The Dual Impacts of Green Credit on Economy and Environment: Evidence from China

Wang, Yanli; Lei, Xiaodong; Zhao, Dongxiao; Long, Ruyin; Wu, Meifen

doi:10.3390/su13084574

Cited by 63 publications

(18 citation statements)

References 60 publications

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“…(2) In terms of regional variability, the impact of the national credit demonstration policy on green economic efficiency in coastal cities is significantly positive, but the impact is not prominent in noncoastal cities. Under the new development pattern, the realistic demand for credit regulation in developed, coastal areas has increased, and the national credit demonstration policy has had a catalytic effect on green economic efficiency through matching credit system supply, similar to the economic impact of green credit in the study by Wang et al [ 33 ]. (3) In terms of political variability, the impact of the national credit demonstration policy on green economic efficiency in cities above the subprovincial level is significantly positive, while the effect on green economic efficiency in prefecture-level cities is insignificant.…”

Section: Discussionmentioning

confidence: 78%

Does the National Credit Demonstration Policy Affect Urban Green Economy Efficiency? Evidence from the Yangtze River Delta Region of China

Chen

Ni²,

Zhu

et al. 2022

IJERPH

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A more scientific green economy efficiency indicator is constructed based on OH (2010), and a multiperiod spatial DID model is used to examine the impact of national credit demonstration policies on urban green economy efficiency in a sample of cities above the prefecture level in the Yangtze River Delta. The study confirms the following: (1) The national credit demonstration policy makes a significant contribution to the green economic efficiency of cities, and it is conducive to strengthening awareness of the rule of law in the market to regulate market order. (2) The demand for credit regulation in coastal areas has increased under the new development pattern, and the national credit demonstration policy has effectively enhanced green economy efficiency through institutional supply. (3) Under the national credit demonstration policy, the subprovincial level and above can mobilise more resources for policy refinement and support, reducing transaction costs and improving the efficiency of the green economy. (4) The impact of the national credit demonstration policy on the efficiency of Zhejiang’s green economy is more obvious; but, under the overall framework of the Yangtze River Delta, the policy has a more prominent role in promoting green economy efficiency in other provinces. Policy insights are as follows: (1) Different cities have different degrees of impact on the efficiency of the green economy from the national credit demonstration policy, and they should implement differentiated measures based on regional heterogeneity; (2) regulating the use of administrative resources and avoiding undue administrative intervention are important prerequisites for promoting regional integration to enhance the efficiency of the green economy; and (3) strengthening interprovincial credit policy synergies can help to alleviate administrative distortions of policy implementation and enhance the efficiency of the regional green economy.

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Section: Discussionmentioning

confidence: 78%

Does the National Credit Demonstration Policy Affect Urban Green Economy Efficiency? Evidence from the Yangtze River Delta Region of China

Chen

Ni²,

Zhu

et al. 2022

IJERPH

View full text Add to dashboard Cite

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“…Green credit policy integrates economic decisions with environmental decisions to arrive at optimally beneficial outcomes (Wang and Zhi, 2016). Wang Y. et al (2021) note that the implementation of green credit policies can improve economic performance and reduce pollutant emission, which is an effective way to achieve sustainable economic development. The green credit policy incorporates environmental risks into the credit management framework, and more credit funds are invested in low-carbon green industries (Cao et al, 2021).…”

Section: Green Credit Policy and So 2 Emissionmentioning

confidence: 99%

“…This policy was formally implemented in 2007. The literature has studied the impacts of this policy on economic development (Wang Y. et al, 2021) and corporate investment (Liu et al, 2015). And, several studies have found that the green credit policy imposes positive impact on environmental quality (Sun et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

Does Green Credit Policy Move the Industrial Firms Toward a Greener Future? Evidence From a Quasi-Natural Experiment in China

Xiao

Lü

Liu

et al. 2022

Front. Environ. Sci.

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How to utilize financial instrument to deal with environmental issues has been a focal topic. Taking the introduction of green credit program as a “quasi-natural experiment,” the propensity score matching and difference-in-difference approach (PSM-DID) are used to investigate the impact of the green credit policy implemented by Chinese government on firm-level industrial pollutant emissions. The estimation results indicate that the green credit policy significantly reduces corporate sulfur dioxide emissions. Heterogeneity analysis shows this impact is more pronounced for large-scale enterprises and enterprises located in the eastern region. The estimated mediation models reveal that after the implementation of the green credit policy, reduction in sulfur dioxide emissions can be attribute to the increased environmental investment and improved energy consumption intensity. Moreover, the green credit policy is also significantly effective in mitigating the discharge of other common industrial pollutants. Our findings highlight the importance of green credit policies in achieving greener industrial production and more sustainable economic development.

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“…Guo et al found that green credit helped to enhance the effectiveness of China’s green economy, and positively contributed to regional economic growth [ 18 , 19 , 20 ], and this promotion also had spatial spillover effects [ 21 ]. The implementation of green credit policies helped to reduce pollutant emissions at both the national level and at the level of heavily polluting industries [ 22 , 23 ], reducing carbon and sulfur dioxide emissions and curbing PM2.5 concentrations [ 24 , 25 , 26 ].…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of the Green Credit Policy on the Short-Term and Long-Term Debt Financing of Heavily Polluting Enterprises: Based on PSM-DID Method

Yang

Zhang

2022

IJERPH

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“Green economy and sustainable development” has become the focus of contemporary world economic development. As an important part of green financial instruments, green credit has become a hot topic. This paper investigates whether the Green Credit Policy has had any impact. Does it have a binding effect on the debt financing of heavily polluting enterprises? Using the Green Credit Guidelines as the starting point for the implementation of the Green Credit Policy, this paper takes Chinese A-share listed enterprises from 2004 to 2020 as the research sample, and applies the propensity score matching combined with difference-in-difference (PSM-DID) method to analyze the impact of green credit policies on the long- and short-term financing scale of heavily polluting enterprises. The study found that the implementation of the Green Credit Policy significantly suppressed the long-term financing of heavily polluting enterprises, but allowed for the expansion of short-term financing for heavily polluting enterprises. Compared with the state-owned enterprises, the Green Credit Policy has a more significant impact on non-state-owned enterprises in terms of suppressing long-term financing and increasing short-term financing, suggesting that the Green Credit Policy is affected by the “credit discrimination” of non-state-owned enterprises. Therefore, the Green Credit Policy still needs to be improved. This study provides empirical evidence of the effectiveness of green credit policies in China, and offers suggestions for further green credit policies in the future.

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The Dual Impacts of Green Credit on Economy and Environment: Evidence from China

Cited by 63 publications

References 60 publications

Does the National Credit Demonstration Policy Affect Urban Green Economy Efficiency? Evidence from the Yangtze River Delta Region of China

Does the National Credit Demonstration Policy Affect Urban Green Economy Efficiency? Evidence from the Yangtze River Delta Region of China

Does Green Credit Policy Move the Industrial Firms Toward a Greener Future? Evidence From a Quasi-Natural Experiment in China

The Impact of the Green Credit Policy on the Short-Term and Long-Term Debt Financing of Heavily Polluting Enterprises: Based on PSM-DID Method

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