An Examination of Green Credit Promoting Carbon Dioxide Emissions Reduction: A Provincial Panel Analysis of China

Wenjie Zhang, Mingyong Hong, Juan Li and Fuhong Li
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Wenjie Zhang: School of Economics, Yunnan University, Kunming 650500, China
Mingyong Hong: School of Economics, Yunnan University, Kunming 650500, China
Juan Li: School of Government, Yunnan University, Kunming 650500, China
Fuhong Li: School of Economics, Guizhou University, Guiyang 550000, China

Sustainability, 2021, vol. 13, issue 13, 1-21

Abstract: The implementation of green finance is a powerful measure to promote global carbon emissions reduction that has been highly valued by academic circles in recent years. However, the role of green credit in carbon emissions reduction in China is still lacking testing. Using a set of panel data including 30 provinces and cities, this study focused on the impact of green credit on carbon dioxide emissions in China from 2006 to 2016. The empirical results indicated that green credit has a significantly negative effect on carbon dioxide emissions intensity. Furthermore, after the mechanism examination, we found that the promotion impacts of green credit on industrial structure upgrading and technological innovation are two effective channels to help reduce carbon dioxide emissions. Heterogeneity analysis found that there are regional differences in the effect of green credit. In the western and northeastern regions, the effect of green credit is invalid. Quantile regression results implied that the greater the carbon emissions intensity, the better the effect of green credit. Finally, a further discussion revealed there exists a nonlinear correlation between green credit and carbon dioxide emissions intensity. These findings suggest that the core measures to promote carbon emission reduction in China are to continue to expand the scale of green credit, increase the technology R&D investment of enterprises, and to vigorously develop the tertiary industry.

Keywords: carbon dioxide emissions intensity; green credit; technological innovation; industrial structure (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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