How does China’s green credit policy affect the green innovation of heavily polluting enterprises? The perspective of substantive and strategic innovations

Liu, Qi; Dong, Bin

doi:10.1007/s11356-022-21199-6

Cited by 43 publications

(33 citation statements)

References 62 publications

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“…More technologically advanced and more difficult high‐level technological innovation projects are substantial green innovation (Jiang & Bai, 2022). Strategic green innovation is a low‐level, low‐difficulty innovation project that caters to government policy (Liu & Dong, 2022). Only substantive innovation can contribute to economic growth.…”

Section: Introductionmentioning

confidence: 99%

Government environmental concerns and corporate green innovation: Evidence from heavy‐polluting enterprises in China

Chen,

Zhu,

Ding

et al. 2023

Bus Strat Env

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The objective of this study is to examine the impact of government environmental concerns on green innovation and whether this has a “leverage effect” or a “crowding‐out effect.” This study employs a two‐way fixed‐effects model to conduct an empirical test using panel data from 2010 to 2020 on Chinese firms listed in heavy‐polluting industries. The results suggest that an increase in government environmental concerns can promote corporate green innovation. However, government environmental concerns primarily stimulate strategic innovation rather than substantive innovation. After a series of robustness and endogeneity tests, the conclusions of this paper still hold. Corporate green innovation induced by government environmental concerns is not the “leverage effect” superimposed on existing innovation activities but the “crowding‐out effect” of other technological innovation. The heterogeneity tests in this paper indicate that the impact is more pronounced for firms with poorer environmental conditions, stronger political connections, and richer executive backgrounds.

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Section: Introductionmentioning

confidence: 99%

Government environmental concerns and corporate green innovation: Evidence from heavy‐polluting enterprises in China

Chen,

Zhu,

Ding

et al. 2023

Bus Strat Env

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“…In addition, green credit has a clear dual impact on enterprise financing. Liu and Dong (2022) found that green credit exacerbates the financing cost of enterprises with high consumption and high pollution ("two high" enterprises). In contrast, it will play a role in alleviating financing constraints for green enterprises (Xu and Li, 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

The spatial spillover effect and mediating effect of green credit on agricultural carbon emissions: Evidence from China

et al. 2023

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Agriculture has become a main source of greenhouse gas emissions globally, so limiting agricultural carbon emissions is an important part of achieving carbon neutrality in China. The reduction of agricultural carbon emissions needs the support of green credit. This paper explores the spatial effect and mechanism of green credit on agricultural carbon emissions. Specifically, based on panel data of 30 Chinese provinces from 2009 to 2019, the relationship between green credit and agricultural carbon emissions is empirically analyzed using spatial econometric and mediating effect models. The results show that green credit has a significant inhibitory effect on agricultural carbon emissions. Meanwhile, green credit can also limit agricultural carbon emissions in surrounding areas through spatial spillover effects. Moreover, the study reveals that green credit can indirectly suppress agricultural carbon emissions by promoting agricultural green technology innovation. Based on the above conclusions, this paper puts forward policy recommendations for the development of green credit and the reduction of agricultural carbon emissions.

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“…The government can promote green management practices in companies through environmental regulation (Liu and Dong, 2022). Accordingly, in China, the government has actively implemented a series of environmental regulation policies.…”

Section: Impact Of China's Green Credit Policymentioning

confidence: 99%

The impact of China's green credit policy on enterprise digital innovation: evidence from heavily-polluting Chinese listed companies

Lu,

Deng,

Wang

et al. 2023

CFRI

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PurposeAs an effective tool to promote rational resource allocation and facilitate the development of green management practices such as enterprise digital innovation, the green credit policy has recently gained extensive attention. The purpose of this paper is to analyze the relationship between green credit policies and the digital innovation of enterprises, and to further explore the mechanism of action between them and their boundary conditions.Design/methodology/approachBased on micro-level data on Chinese firms from 2007 to 2019, this paper constructs a difference-in-differences (DID) model to investigate the impact and intrinsic mechanisms of green credit policies on firms' digital innovation and its boundary conditions, with the help of a quasi-natural experiment, i.e. the Green Credit Guidelines.FindingsGreen credit policies inhibit digital innovation and fail to compensate for innovation. The analysis of the mechanism shows that the implementation of green credit policies has a negative impact on digital innovation by increasing the financing constraints faced by firms, and has also a crowding-out effect on R&D investment, resulting in a disincentive to digital innovation. Further analysis reveals that the negative impact of green credit policies on digital innovation is more pronounced in state-owned enterprises, enterprises without financially experienced executives, and in the eastern regions of China.Originality/valueThis study provides empirical evidence to understand the effectiveness and mechanism of influence of green credit policies on enterprise digital innovation, providing also a basis to further improve green credit policies.

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How does China’s green credit policy affect the green innovation of heavily polluting enterprises? The perspective of substantive and strategic innovations

Cited by 43 publications

References 62 publications

Government environmental concerns and corporate green innovation: Evidence from heavy‐polluting enterprises in China

Government environmental concerns and corporate green innovation: Evidence from heavy‐polluting enterprises in China

The spatial spillover effect and mediating effect of green credit on agricultural carbon emissions: Evidence from China

The impact of China's green credit policy on enterprise digital innovation: evidence from heavily-polluting Chinese listed companies

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