Green financial policies and capital flows

Yang, Dan; Chen, Zi-yue; Yang, Yong‐cong; Nie, Pu‐yan

doi:10.1016/j.physa.2019.01.126

Cited by 50 publications

(27 citation statements)

References 36 publications

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“…Then, EOGC is an expansionary monetary policy with differential interest rates. This conclusion is different from that in Yang et al [77], who concluded that green credit should be a fiscal policy similar to low-interest or soft loans. Expansionary monetary policy does not mean low interest [27].…”

Section: Literature Reviews and Contributionscontrasting

confidence: 89%

“…In cooperation with the Environmental Protection Administration, the China Banking Regulatory Commission (CBRC)ordered domestic banks to tighten the credit exposure of the high-pollution and high-emission industries and expand the credit exposure of the green industries, to decrease the negative effects of industrialization on the environment. Some of the literature has posited that this green credit policy has produced notable results, for example, seriously restricting the debt maturity of high-pollution and high-emission enterprises [74], inhibiting investment in energy-intensive industries [52], the negative net debt financing effect of state-owned enterprises [53], and the positive impact on renewable energy companies [77].…”

Section: Literature Reviews and Contributionsmentioning

confidence: 99%

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Can the reform of green credit policy promote enterprise eco-innovation? A theoretical analysis

Wu¹,

Wu²,

Zhao³

2022

JIMO

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The weakness that China's traditional credit fails to effectively limit enterprise emissions has become increasingly evident. Although the industryoriented green credit policy has achieved certain effects on environmental performance through the differentiated resource allocation of the industries, banking financial institutions have the ambiguity in the definition of the credit object and the characteristics of profit maximization, which cannot achieve the essential purpose of green credit sustainably. Hence, we propose a new eco-innovation-oriented green credit policy. We prove theoretically that the new green credit is feasible and can be used as an exogenous driver for improving enterprises' eco-innovation. Contrasting with traditional credit, the newly proposed credit policy is an expansionary monetary policy, which has the characteristics of expanding credit lines and differential interest rates. Utilizing evolutionary game theory, we calculate the evolution stability conditions of green credit and eco-innovation. The results show that the key to green credit to maintaining sustainable development is the return on investment due to eco-innovation. Our theoretical analysis also reveals that environmental benefit-cost ratios and adjustment cost parameters of different assets are the important factors for green credit. 2020 Mathematics Subject Classification. 91B03.

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Section: Literature Reviews and Contributionscontrasting

confidence: 89%

Section: Literature Reviews and Contributionsmentioning

confidence: 99%

Can the reform of green credit policy promote enterprise eco-innovation? A theoretical analysis

Wu¹,

Wu²,

Zhao³

2022

JIMO

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“…It is a new type of government subsidy in recent years. For example, the German government provides subsidies to banks and urges them to offer low-interest loans (2.5% to 5.1%) for wind and photovoltaic projects [33]. The other is subsidy mechanism [32], under which the government provides price subsidy to manufacturers directly.…”

Section: Shuai Huang Zhi-ping Fan and Xiaohuan Wangmentioning

confidence: 99%

Optimal financing and operational decisions of capital-constrained manufacturer under green credit and subsidy

Huang¹,

Fan²,

Wang³

2021

Journal of Industrial &Amp; Management Optimization

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To stimulate the capital-constrained manufacturer to produce green products, the government often adopts two incentive mechanisms: green credit (i.e., subsidy offered directly to bank) and subsidy (i.e., subsidy offered directly to manufacturer). This paper examines the optimal interest rate of the bank, and the optimal product green degree and sales price of the manufacturer under the two mechanisms, respectively. Furthermore, we investigate the effects of these mechanisms on the optimal decisions, the profits of players, the social welfare and the environmental benefits. Several important results are obtained. First, when the total government subsidy is low, the green credit mechanism can bring the higher green degree, product sales price and demand, as well as higher profits for the bank and manufacturer, rather than the subsidy mechanism. Otherwise, the result is opposite. Second, the government should adopt the green credit mechanism to support the manufacturer to develop green products when the budget is limited and relatively low. If the government budget is sufficient, the subsidy mechanism is the best choice, which can bring higher economic and environmental benefits.

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“…For example, in an empirical study on the data of listed companies in the manufacturing industry between 2010 and 2015, Wang et al found that China's green finance was at an inefficient allocation level, but green policies could improve the green finance's allocation efficiency while the shortage of green supervisory policies restrained the positive impact of financial development on the green finance's allocation efficiency [11]. According to the study conducted by Yang et al, under capital rationing conditions, green credit policy could exert positive influence on renewable energy sources enterprises [12]. Liu et al performed a quasi-natural experiment in China based on the enacting of green credit directive policy, and concluded that the debt financing capacity of heavy polluting enterprises declined sharply while state-owned enterprises and enterprises in regions with vulnerable finance ecology produced a remarkable net effect in debt financing [13].…”

Section: Introductionmentioning

confidence: 99%

Research on the Environmental Effect of Green Finance Policy Based on the Analysis of Pilot Zones for Green Finance Reform and Innovations

Huang

Zhang

2021

Sustainability

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In this study, taking the pilot zones for green finance reform and innovations set up in 2017 as the objects, a quasi-natural experiment is conducted to assess the environmental effects of green finance policy using the difference-in-difference propensity score matching (PSM-DID) method based on the panel data in 30 provincial-level administrative regions from 2011 to 2019. In addition, further efforts are made to investigate the differences of green financial policies in environmental effect. According to the research findings, the set-up of green finance pilot zones can reduce the environmental pollution, and green finance policy is conductive to environmental enhancement. Meanwhile, a partial mediating effect exists between a region’s innovation capability and industrial structure. On the whole, green finance policy plays the most significant role in improving the eastern region’s environmental pollution, followed by the central region, but barely enhances the environment in the western region. To sum up, the more serious the environmental pollution is, the better the effect of green finance policy.

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Green financial policies and capital flows

Cited by 50 publications

References 36 publications

Can the reform of green credit policy promote enterprise eco-innovation? A theoretical analysis

Can the reform of green credit policy promote enterprise eco-innovation? A theoretical analysis

Optimal financing and operational decisions of capital-constrained manufacturer under green credit and subsidy

Research on the Environmental Effect of Green Finance Policy Based on the Analysis of Pilot Zones for Green Finance Reform and Innovations

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