Green credit policy and corporate climate risk exposure

Feng He, Lin Duan, Yi Cao and Shuyang Wen

Energy Economics, 2024, vol. 133, issue C

Abstract: This paper investigates the effects of green credit policies on corporate climate risk exposure and the underlying mechanisms in China. Our results show that after the introduction of green credit policies, enterprises in polluting industries experienced a notable decline in climate risk compared to their counterparts. Further analysis reveals that the effectiveness of green credit policies in mitigating corporate climate risks can be attributed to their capacity to foster green technological innovation, refine investment strategies, facilitate the process of digitalization, and enhance the visibility of environmental issues among analysts. Moreover, we find that climate risk shaping policies vary significantly among firms, with particularly pronounced impacts on financially constrained and state-owned enterprises. This study provides critical insights for policymakers aiming to address climate challenges and bolster green financial strategies.

Keywords: Green credit policy; Climate risk exposure; Green innovation; China (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:133:y:2024:i:c:s0140988324002172

DOI: 10.1016/j.eneco.2024.107509

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