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Can Green Credit Policies Accelerate the Realization of the Dual Carbon Goal in China? Examination Based on an Endogenous Financial CGE Model

Author

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  • Qianyi Du

    (School of Economics and Resource Management, Beijing Normal University, Beijing 100875, China
    Center for Innovation and Development Studies, Beijing Normal University, Zhuhai 519087, China)

  • Haoran Pan

    (School of Economics and Resource Management, Beijing Normal University, Beijing 100875, China
    Center for Innovation and Development Studies, Beijing Normal University, Zhuhai 519087, China)

  • Shuang Liang

    (School of Economics and Resource Management, Beijing Normal University, Beijing 100875, China
    Center for Innovation and Development Studies, Beijing Normal University, Zhuhai 519087, China)

  • Xiaoxue Liu

    (School of Economics, Beijing Technology and Business University, Beijing 100048, China)

Abstract

Green credit is an indispensable funding source through which China can achieve its carbon neutrality goal. This paper quantifies the influences of different green credit scales on energy structures, carbon reduction, the industrial economy, and the macroeconomy. It creates a green credit mechanism related to green technology innovation in a Chinese carbon neutrality computable general equilibrium (CGE) model and integrates energy, environmental, economic, and financial (3EF) systems. The green credit scale can influence green technology innovation and hence CO 2 emissions. The results show that (1) green credit can accelerate China’s achievement of its carbon neutrality goal, and the larger the green credit scale, the less time it takes to achieve goals; (2) the influence of green credit scales confers marginal decreasing effects with realistic policy considerations; (3) using a cost–benefit perspective, 60% is the most appropriate green credit scale to use to achieve dual carbon goals in China; (4) the different green credit scales have a heterogeneous impact on the industry output, and high-carbon-emission producers from nonenergy industries need to pay attention to their green credit risk. This research provides a scientific reference for the policy design of China’s future green financial market development.

Suggested Citation

  • Qianyi Du & Haoran Pan & Shuang Liang & Xiaoxue Liu, 2023. "Can Green Credit Policies Accelerate the Realization of the Dual Carbon Goal in China? Examination Based on an Endogenous Financial CGE Model," IJERPH, MDPI, vol. 20(5), pages 1-26, March.
    • Handle: RePEc:gam:jijerp:v:20:y:2023:i:5:p:4508-:d:1086692
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