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Green credit policy and enterprise carbon performance: evidence from China

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  • Zhonglu Liu
  • Wenjiao Men
  • Shuguang He
  • Haibo Sun

Abstract

Exploring enterprise carbon performance (ECP) via green capital allocation is important for achieving the dual carbon goal. In this article, the impact of the green credit policy (GCP) on ECP is empirically examined using a difference-in-differences model. The results show that GCP significantly improves ECP, and this conclusion remains valid after a series of robustness tests. Low-carbon technology and carbon information disclosure are central transmission mechanisms that are positively adjusted by green consumption, environmental regulation, and marketisation degree. Furthermore, state-owned and declining enterprises are affected more strongly by GCP than non-state-owned, growing, and mature enterprises. The impact of GCP on ECP increases over the enterprise life cycle.

Suggested Citation

  • Zhonglu Liu & Wenjiao Men & Shuguang He & Haibo Sun, 2024. "Green credit policy and enterprise carbon performance: evidence from China," Post-Communist Economies, Taylor & Francis Journals, vol. 36(5), pages 562-581, July.
  • Handle: RePEc:taf:pocoec:v:36:y:2024:i:5:p:562-581
    DOI: 10.1080/14631377.2024.2323318
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