Loaning scale and government subsidy for promoting green innovation

By Zhehao Huang, Gaoke Liao, Zhenghui Li. Technological forecasting & social change, 2019

515 citations recorded by the source corpus.

Abstract Green innovation has attracted worldwide attention in the past decades. In this paper, we develop series of game models to address the effects of green loans and government subsidies on green innovation activities of enterprises. We derive a threshold value for loaning interest rate. If the interest rate of the green loan is lower than this threshold value, then the enterprises are willing to accept the loan from the bank and implement green innovation. By defining a measure for environmental effect of productive activities, we obtain a threshold value for the loaning scale. If the loaning scale is larger than this threshold value, then it meets the purpose of green loan to improve the environmental quality. We prove the effectiveness of government subsidies as an intervention way in supporting green innovation and environmental protection.

Subfields: Economics and Econometrics, Marketing, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/1c208705ac09c7744618a87c196159e3cdfb614c

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In Strategy and Management

1. E. Tenakwah
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4. Deborah Ofosu

Citations in the corpus

• A review of studies on green finance of banks, research gaps and future directions (2021, background): “The challenge on controlling risks on green finance has been largely attributed to limited common risk management models, standards for classification, or labeling of relevant risks on green finance (Falcone and Sica 2019; Huang, Liao, and Li 2019).”