Do the Green Credit Guidelines Affect Renewable Energy Investment? Empirical Research from China

Kexian Zhang, Yan Wang and Zimei Huang
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Kexian Zhang: School of Economics and Management, Hunan Institute of Technology, Hengyang 421002, China
Yan Wang: School of Economics and Statistics, Guangzhou University, Guangzhou 510006, China
Zimei Huang: School of Economics and Statistics, Guangzhou University, Guangzhou 510006, China

Sustainability, 2021, vol. 13, issue 16, 1-18

Abstract: How to promote renewable energy investment is central to energy transformation and green development. To take China’s “green credit guidelines” policy as a quasi-natural experiment, we investigate the impacts of green credit policy on renewable energy investment. Using the samples of 1021 Chinese listed enterprises during 2007–2017, we find that: Firstly, the introduction of the green credit guidelines has promoted renewable energy investment. Secondly, short-term debts play a mediating role in the impacts of green credit guidelines on renewable energy investment, while long-term debts play a masking role, and financing constraints do not play a significant role. Thirdly, the heterogeneous impacts on renewable energy investment are reflected in different ownerships and enterprise scales, with significant impacts on the state-owned enterprises and small ones.

Keywords: green credit guidelines; renewable energy investment; difference-in-difference model; heterogeneity; the mediation effect (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 (11)

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