Work

Environmental Effects of Green Credit Policy: Evidence From China

Year: 2025

Type: article

Abstract: ABSTRACT This article uses a quasi‐natural test method to study the environmental effects of China's Green Credit Guidelines on high‐polluting enterprises based on firm‐level data. It turns out that the Guidelines have significantly reduced the emission intensity of HPEs, mainly due to the quality improvement of green innovations, changes in the loan structure, assets optimization, and the relaxation of financial constraints. In addition, we also found that the emission reduction effect is more manifest in state‐owned enterprises and in regions with lower levels of marketization and environmental penalties. These conclusions are of great significance for further green credit policies.

Source: Review of International Economics

DOI: 10.1111/roie.70019

Authors: Shuijun Peng, Zhongqiao Shu, Wencheng Zhang, Ling Liu

Institutions: Xiamen University, Zhongnan University of Economics and Law, Hunan University

Language: English

Topic: Sustainable Finance and Green Bonds

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Climate action, Responsible consumption and production

Open Access status: bronze

Funders: Fundamental Research Funds for the Central Universities, National Social Science Fund of China