Work

The Impact of Green Credit Policies on Investment and Financing Behavior of Renewable Energy Enterprises

Year: 2024

Type: article

Abstract: Under the constraint of “double carbon”goal, Enhancing access to green finance, reducing financing challenges and insufficient investment of renewable energy enterprises are of great value for green economy. Based on the panel data of Chinese A-share listed enterprises from 2010-2020, this paper uses Difference-in-Difference method to study the impact of green credit policy on the investment and financing behavior of renewable energy enterprises, leveraging a policy experiment in China, which is called “Official implementation of the Guidance on the Construction of a Green Financial System” issued in 2016. The results show that the financing cost of renewable energy enterprises has significantly decreased and the financing cost of small non-state-owned enterprises has decreased more obviously. The investment scale of renewable energy enterprises has significantly increased and the investment scale of small renewable energy enterprises has increased more obviously, indicating that green credit has significant financing promotion effect and investment incentive effect on renewable energy enterprises.

Source: Polish Journal of Environmental Studies

DOI: 10.15244/pjoes/192931

Authors: Meng Li, Jingyan Zhao, Hanjun Li

Institutions: Civil Aviation University of China, Tianjin University of Finance and Economics, Guangzhou College of Commerce

Language: English

Topic: Sustainable Finance and Green Bonds

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Climate action, Affordable and clean energy, Industry, innovation and infrastructure

Open Access status: diamond

OpenAlex ID: W4404193966