Can Green Credit Policies Accelerate the Realization of the Dual Carbon Goal in China? Examination Based on an Endogenous Financial CGE Model

Qianyi Du, Haoran Pan, Shuang Liang () and Xiaoxue Liu ()
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Qianyi Du: School of Economics and Resource Management, Beijing Normal University, Beijing 100875, China
Haoran Pan: School of Economics and Resource Management, Beijing Normal University, Beijing 100875, China
Shuang Liang: School of Economics and Resource Management, Beijing Normal University, Beijing 100875, China
Xiaoxue Liu: School of Economics, Beijing Technology and Business University, Beijing 100048, China

IJERPH, 2023, vol. 20, issue 5, 1-26

Abstract: Green credit is an indispensable funding source through which China can achieve its carbon neutrality goal. This paper quantifies the influences of different green credit scales on energy structures, carbon reduction, the industrial economy, and the macroeconomy. It creates a green credit mechanism related to green technology innovation in a Chinese carbon neutrality computable general equilibrium (CGE) model and integrates energy, environmental, economic, and financial (3EF) systems. The green credit scale can influence green technology innovation and hence CO 2 emissions. The results show that (1) green credit can accelerate China’s achievement of its carbon neutrality goal, and the larger the green credit scale, the less time it takes to achieve goals; (2) the influence of green credit scales confers marginal decreasing effects with realistic policy considerations; (3) using a cost–benefit perspective, 60% is the most appropriate green credit scale to use to achieve dual carbon goals in China; (4) the different green credit scales have a heterogeneous impact on the industry output, and high-carbon-emission producers from nonenergy industries need to pay attention to their green credit risk. This research provides a scientific reference for the policy design of China’s future green financial market development.

Keywords: green credit; green technology innovation; computable general equilibrium analysis; dual carbon goals; economic effect; environmental effect (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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