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Do the Green Credit Guidelines Affect Renewable Energy Investment? Empirical Research from China

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  • Kexian Zhang

    (School of Economics and Management, Hunan Institute of Technology, Hengyang 421002, China)

  • Yan Wang

    (School of Economics and Statistics, Guangzhou University, Guangzhou 510006, China)

  • Zimei Huang

    (School of Economics and Statistics, Guangzhou University, Guangzhou 510006, China)

Abstract

How to promote renewable energy investment is central to energy transformation and green development. To take China’s “green credit guidelines” policy as a quasi-natural experiment, we investigate the impacts of green credit policy on renewable energy investment. Using the samples of 1021 Chinese listed enterprises during 2007–2017, we find that: Firstly, the introduction of the green credit guidelines has promoted renewable energy investment. Secondly, short-term debts play a mediating role in the impacts of green credit guidelines on renewable energy investment, while long-term debts play a masking role, and financing constraints do not play a significant role. Thirdly, the heterogeneous impacts on renewable energy investment are reflected in different ownerships and enterprise scales, with significant impacts on the state-owned enterprises and small ones.

Suggested Citation

  • Kexian Zhang & Yan Wang & Zimei Huang, 2021. "Do the Green Credit Guidelines Affect Renewable Energy Investment? Empirical Research from China," Sustainability, MDPI, vol. 13(16), pages 1-18, August.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:16:p:9331-:d:617745
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    2. Benavides-Franco, Julián & Gómez, Juan M. & Pérez-Uribe, Miguel A., 2023. "Determinants of Project Finance success for renewable energy," Renewable Energy, Elsevier, vol. 211(C), pages 188-201.
    3. Zhao, Qian & Qin, Chuan & Ding, Longfei & Cheng, Ying-Yue & Vătavu, Sorana, 2023. "Can green bond improve the investment efficiency of renewable energy?," Energy Economics, Elsevier, vol. 127(PB).
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    5. Ma, Yanbai & Lu, Ling & Cui, Jingbo & Shi, Xunpeng, 2024. "Can green credit policy stimulate firms’ green investments?," International Review of Economics & Finance, Elsevier, vol. 91(C), pages 123-137.
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    8. Zhifeng Zhang & Hongyan Duan & Shuangshuang Shan & Qingzhi Liu & Wenhui Geng, 2022. "The Impact of Green Credit on the Green Innovation Level of Heavy-Polluting Enterprises—Evidence from China," IJERPH, MDPI, vol. 19(2), pages 1-19, January.
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