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Less financial constraints, more clean production? New evidence from China

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  • Zhang, Dongyang
  • Zheng, Wenping

Abstract

This paper explores the effects of financial constraints on pollution abatement at firm level in China. By using a novel matched data contains rich financing information and air pollution protection variables, we find financial constraints hinder air pollution abatement significantly, whereas state-owned factor can alleviate financial constraints through external financial resources and better support pollution expense than privately and foreign owned firms.

Suggested Citation

  • Zhang, Dongyang & Zheng, Wenping, 2019. "Less financial constraints, more clean production? New evidence from China," Economics Letters, Elsevier, vol. 175(C), pages 80-83.
    • Handle: RePEc:eee:ecolet:v:175:y:2019:i:c:p:80-83
    DOI: 10.1016/j.econlet.2018.12.032
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    Cited by:

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    2. Mariarosaria Agostino & Sabrina Ruberto, 2024. "Credit rationing and SMEs’ environmental performance in transition and developing countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 16627-16656, July.
    3. Gholipour, Hassan F. & Arjomandi, Amir & Yam, Sharon, 2022. "Green property finance and CO2 emissions in the building industry," Global Finance Journal, Elsevier, vol. 51(C).
    4. Thomas Pernet & Mathilde Maurel & Zhao Ruili, 2023. "Internal finance, financial constraint and pollution emissions: evidence from China," Documents de travail du Centre d'Economie de la Sorbonne 23015, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    5. Qian Zhang & Kuo-Jui Wu & Ming-Lang Tseng, 2019. "Exploring Carry Trade and Exchange Rate toward Sustainable Financial Resources: An application of the Artificial Intelligence UKF Method," Sustainability, MDPI, vol. 11(12), pages 1-26, June.
    6. Rongwu Zhang & Wenqiang Fu & Yingxu Kuang, 2022. "Can Digital Economy Promote Energy Conservation and Emission Reduction in Heavily Polluting Enterprises? Empirical Evidence from China," IJERPH, MDPI, vol. 19(16), pages 1-21, August.
    7. Li Song & Xiaoliang Zhou, 2021. "Does the Green Industry Policy Reduce Industrial Pollution Emissions?—Evidence from China’s National Eco-Industrial Park," Sustainability, MDPI, vol. 13(11), pages 1-22, June.
    8. Zhang, Dongyang, 2022. "Does the green loan policy boost greener production? – Evidence from Chinese firms," Emerging Markets Review, Elsevier, vol. 51(PB).
    9. Gao, Jingyi & Han, Caizhen, 2021. "Does foreign equity matter for pollution? Firm-level evidence from China," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 205-214.
    10. Yang, Zhihao & Hong, Junjie & Wang, Xuan, 2022. "Environmental spillovers in international joint ventures: Evidence from Chinese industrial firms," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    11. Chen, Xu & Xu, Huilin & Anwar, Sajid, 2024. "Bank competition, government interest in green initiatives and carbon emissions reduction: An empirical analysis using city-level data from China," The North American Journal of Economics and Finance, Elsevier, vol. 72(C).
    12. Zhang, Dongyang, 2021. "Marketization, environmental regulation, and eco-friendly productivity: A Malmquist–Luenberger index for pollution emissions of large Chinese firms," Journal of Asian Economics, Elsevier, vol. 76(C).

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    More about this item

    Keywords

    Pollution abatement; Financial constrains; Ownership discrimination;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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