Can Easing Financial Constraints Reduce Carbon Emissions? Evidence from a Large Sample of French Companies

Mattia Guerini (), Giovanni Marin and Francesco Vona ()
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Mattia Guerini: UniBs - Università degli Studi di Brescia = University of Brescia
Francesco Vona: UNIMI - Università degli Studi di Milano = University of Milan, OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po

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Abstract: We study how monetary policy shapes firm-level carbon emissions by exploiting the ECB's 2012 entry into the zero lower bound as a plausibly exogenous credit easing. Using administrative and sur-vey data on French manufacturing firms from 2000-2019 and a difference-in-differences design with debt-to-asset ratios as exposure, we show that financially constrained firms cut emissions 9.4% more than unconstrained ones, primarily through lower energy intensity and capital-deepening productivity gains. Small and medium enterprises drive the results. Aggregating our estimates implies average annual reductions of 3.3%, amounting to 5.3 million tonnes of CO2 saved.

Keywords: Financial constraints; credit supply; firm-level carbon emissions; climate policies (search for similar items in EconPapers)
Date: 2025-11
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-05514918v1
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Working Paper: Can easing financial constraints reduce carbon emissions? evidence from a large sample of French companies (2025)
Working Paper: Can Easing Financial Constraints Reduce Carbon Emissions? Evidence from a Large Sample of French Companies (2025)
Working Paper: Can Easing Financial Constraints Reduce Carbon Emissions? Evidence from a Large Sample of French Companies (2025)
Working Paper: Can Easing Financial Constraints Reduce Carbon Emissions? Evidence from a Large Sample of French Companies (2025)
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