Environmental courts, green credit, and corporate carbon reduction

Yilin Li, Keying Li, Juan Li, Yinglong Zheng, Tian, Grace (Li) and Wang, David (Han)

Finance Research Letters, 2025, vol. 79, issue C

Abstract: Using data from Chinese listed companies from 2008 to 2022, this study examines the impact of environmental courts and green credit on corporate carbon emission reduction. The findings indicate that green credit, as an innovative financial policy tool, significantly contributes to lowering corporate carbon footprints. Additionally, it indirectly supports the transition to a low-carbon economy by enhancing overall factor productivity. Moreover, environmental courts positively influence the effectiveness of green credit in reducing emissions, though this moderating effect varies considerably across firms with different ownership structures and pollution levels.

Keywords: Environmental court; Green credit; Corporate carbon emission reduction; Total factor productivity (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:79:y:2025:i:c:s1544612325005379

DOI: 10.1016/j.frl.2025.107274

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