Navigating sustainable finance: Examining the impact of sustainable credit policy on energy consumption intensity

Can Zhang, Jingyi Liu, Mohammad Zoynul Abedin and Brian Lucey

Research in International Business and Finance, 2025, vol. 73, issue PA

Abstract: By using microeconomic database, this paper aims to examine the impact of sustainable credit policy (SCP) on energy consumption intensity (ECI) with difference-in-differences (DID). According to the overall result, SCP significantly inhibits ECI of high-polluting industrial companies. Based on the result of mechanism analysis, SCP influences ECI through factor substitution and energy technology innovation. Furthermore, compared with factor substitution, energy technology innovation plays a more remarkable role in reducing ECI. As distinguished from the available literature, we discover that energy technology innovation has a greater impact on the decline of ECI only within enterprise samples in the mature stage of technology, while factor substitution is more obvious among the resource-intensive enterprises. Theoretical and empirical support for the effective formulation of policies is provided herein to accelerate energy transition and sustainable industrial growth.

Keywords: Sustainable industrial growth; Sustainable credit policy; Energy consumption intensity; Factor substitution; Energy technology innovation (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:73:y:2025:i:pa:s0275531924003878

DOI: 10.1016/j.ribaf.2024.102594

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