Can green credit policy increase corporate pollution abatement efforts? Evidence from China

Jinming Lai, Xin Liu and Lu Yuan

International Review of Economics & Finance, 2024, vol. 93, issue PB, 797-813

Abstract: Based on the green credit policy enacted in China since 2012, our study examines the monitoring role of banks in promoting corporate pollution abatement. The results show that the green credit policy has a significantly positive effect on corporate green innovation for polluting firms. Furthermore, we find that the positive effect is more pronounced when banks substitute institutional investors and media to monitor corporate environmental performance, in the product market of intense peer competition, and in regions where environmental regulatory enforcement is strong. These results suggest that the green credit policy strengthens the monitoring force of banks, thus promoting corporate green transformation and development.

Keywords: Green credit policy; The 2012 green credit Guidelines; Pollution abatement; Green innovation; Bank monitoring (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1059056024003241
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:93:y:2024:i:pb:p:797-813

DOI: 10.1016/j.iref.2024.05.026

Access Statistics for this article

International Review of Economics & Finance is currently edited by H. Beladi and C. Chen

More articles in International Review of Economics & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().