Can Green Credit Interest Subsidy Policy Promote Corporate Green Innovation?—From the Perspective of Fiscal and Financial Policy Coordination

Fei Liu and Zhenxiang Wang ()
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Fei Liu: School of Economics, Henan University, Jinming Road, Longting District, Kaifeng 475001, China
Zhenxiang Wang: School of Economics, Henan University, Jinming Road, Longting District, Kaifeng 475001, China

Sustainability, 2025, vol. 17, issue 21, 1-30

Abstract: This study selects Chinese A-listed non-financial and non-insurance enterprises covering the period from 2009 to 2023 as the research sample. Utilizing the green credit interest subsidy policy (GCISP) as a quasi-natural experiment, it employs a multi-period difference-in-differences (DID) model to examine the policy effect and micro-level mechanisms through which GCISP—by coordinating fiscal subsidies with green finance—impacts corporate green innovation. The findings reveal that GCISP significantly promotes corporate green innovation. This enhancing effect is achieved through two pathways: alleviating financing constraints and reducing agency costs. The conclusions of this study provide valuable insights for refining green economic policies that harmonize green finance with fiscal subsidies, and offer reliable empirical evidence and policy implications to support corporate green transformation.

Keywords: green credit interest subsidy policy; corporate green innovation; fiscal-financial policy coordination; liquidity constraints; agency costs; greenwashing; rent-seeking (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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