Work

Green Credit Policies and the Devaluation of Pollution-Intensive Enterprises: A Quasi-Natural Experiment

Year: 2025

Type: article

Abstract: We investigate the impact of green credit policies on pollution-intensive enterprises from a new perspective. Empirically, we utilize the issuance of China’s green credit policy in 2012 to construct a quasi-natural experiment. The results show that green credit policies can significantly reduce the market value of pollution-intensive enterprises. Furthermore, our analysis of profitability and R&D investment shows that the decline in market value is driven by real financial deterioration rather than short-term investor reactions. The results indicate that green credit policies can effectively suppress pollution-intensive enterprises. Additionally, the results also suggest that China’s stock market reasonably prices environmental risks.

Source: Sustainability

DOI: 10.3390/su17052262

Authors: Weidong Huo, Bingwen Wang

Institution: Liaoning University

Language: English

Topic: Sustainable Finance and Green Bonds

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Responsible consumption and production, Climate action

Open Access status: gold

Estimated APC paid: $2,896