Green credit policy, credit allocation efficiency and upgrade of energy-intensive enterprises

By Huwei Wen, Chien‐Chiang Lee, Fengxiu Zhou. 2021

502 citations recorded by the source corpus.

Abstract Using the quasi-experimental method, this research investigates the impact of green credit policy on the upgrade of energy-intensive enterprises from the perspective of credit allocation efficiency. Through the panel data of listed companies in China, this study finds that the green credit policy under the Green Credit Guidelines in 2012 (GCG2012) has a significantly negative effect on the research and development (R&D) intensity and the total factor productivity (TFP) of treated firms. Empirical evidence also shows that the GCG2012 significantly reduces bank credit but increases trade credit. Consequently, the substitution hypothesis is established. Furthermore, GCG2012 has reduced the allocation efficiency of bank credit within energy-intensive industries. As an improved green credit policy to encourage enterprises to invest in energy efficiency, the Energy Efficiency Credit Guidelines in 2015 (EECG2015) increases both the bank credit and the fixed asset investment, whereas no increase in R&D intensity or TFP is found. These findings are enlightening for designing better green credit policies.

Subfields: Accounting, Economics and Econometrics, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/07b683a7be8cf088c61bda15d10e3acdf303b162

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Feiyang Cheng
2. Shouyu Yao
3. Yuying Pan
4. Gazi Salah Uddin
5. Ahmet Sensoy

In Economics and Econometrics

1. Huwei Wen
2. Zihan Li
3. Nuoyan Li
4. Gazi Salah Uddin
5. Ahmet Sensoy
6. Olivier Kraaijeveld
7. J. Smedt

Citations in the corpus

• Green credit policy and firm performance: What we learn from China (2021, background): “Some researchers believe that green credit policy not only inhibits heavily polluting firms’ long-term borrowing level and total factor productivity (Sun et al., 2019; Wen et al., 2021), but increase firms’ information transparency, and produce environmental protection effects (Eiler et al.”
• Digital Economy and Environmental Quality: Evidence from 217 Cities in China (2021, background): “Many studies have shown that the level of technology can inhibit environmental pollution [24,25], including clean technology, energy efficiency, production technology, and other action channels [12].”