2022
DOI: 10.1016/j.jenvman.2022.116178
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Save the environment, get financing! How China is protecting the environment with green credit policies?

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Cited by 72 publications
(14 citation statements)
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“…Zhou et al [ 16 ] argue that increasing the number of green loans in commercial banks will reduce the credit risk of large state-owned banks while increasing it for commercial banks in smaller cities/regions. According to Su et al [ 43 ], increasing the ratio of green loans assists in reducing credit risk and improving the stability of the financial system. The risk appetite of financial institutions affects their credit lines and environmental performance; thus, an interest subsidy policy is implemented to limit the downside risk of financial institutions [ 21 ].…”
Section: Literature Reviewmentioning
confidence: 99%
“…Zhou et al [ 16 ] argue that increasing the number of green loans in commercial banks will reduce the credit risk of large state-owned banks while increasing it for commercial banks in smaller cities/regions. According to Su et al [ 43 ], increasing the ratio of green loans assists in reducing credit risk and improving the stability of the financial system. The risk appetite of financial institutions affects their credit lines and environmental performance; thus, an interest subsidy policy is implemented to limit the downside risk of financial institutions [ 21 ].…”
Section: Literature Reviewmentioning
confidence: 99%
“…When the government has a high GIP, moderate government regulation of the environment can promote enterprises' independent research and development of green technologies and enterprises obtain higher returns through technological innovation. Meanwhile, the government can effectively play the “supporting hand”; provide capital and resource support; stimulate the spirit of adventurers; promote DA from multiple perspectives such as capital, technology, and management; and then promote SGI (Su et al, 2022). On the contrary, when GIP is low, enterprises lack the support of the government in all aspects, coupled with the R&D department's characteristics of high investment, slow return, and high failure rate, and green innovation has an externality disadvantage that social benefits are greater than corporate benefits, it is often prone to rent‐seeking behavior, transferring funds to non‐green research and development or the projects of STRA, which inhibits the progress of the digital industry and reduces the level of DA and then weakens the role of DA in promoting SGI.…”
Section: Theoretical Analysis and Research Hypothesismentioning
confidence: 99%
“…Moreover, the paper adds the growth of nancial institutions in green nance. Based on ndings, nancial institutions can adjust their business strategies and introduce green nance products related to energy transition, such as green bonds, green credits, etc., to attract clients interested in investing in sustainable energy (Li et al, 2022b;Su et al, 2022). This requires nancial institutions to possess specialized knowledge and collaborate with other stakeholders to achieve the dual goals of sustainable nance and energy transition.…”
Section: Practical Implicationsmentioning
confidence: 99%