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Navigating sustainable finance: Examining the impact of sustainable credit policy on energy consumption intensity

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  • Zhang, Can
  • Liu, Jingyi
  • Abedin, Mohammad Zoynul
  • Lucey, Brian

Abstract

By using microeconomic database, this paper aims to examine the impact of sustainable credit policy (SCP) on energy consumption intensity (ECI) with difference-in-differences (DID). According to the overall result, SCP significantly inhibits ECI of high-polluting industrial companies. Based on the result of mechanism analysis, SCP influences ECI through factor substitution and energy technology innovation. Furthermore, compared with factor substitution, energy technology innovation plays a more remarkable role in reducing ECI. As distinguished from the available literature, we discover that energy technology innovation has a greater impact on the decline of ECI only within enterprise samples in the mature stage of technology, while factor substitution is more obvious among the resource-intensive enterprises. Theoretical and empirical support for the effective formulation of policies is provided herein to accelerate energy transition and sustainable industrial growth.

Suggested Citation

  • Zhang, Can & Liu, Jingyi & Abedin, Mohammad Zoynul & Lucey, Brian, 2025. "Navigating sustainable finance: Examining the impact of sustainable credit policy on energy consumption intensity," Research in International Business and Finance, Elsevier, vol. 73(PA).
    • Handle: RePEc:eee:riibaf:v:73:y:2025:i:pa:s0275531924003878
    DOI: 10.1016/j.ribaf.2024.102594
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