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Does green credit policy promote innovation: A case of China

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  • Qiaoxin Xie
  • Yu Zhang
  • Lei Chen

Abstract

This paper constructs a quasi‐natural experiment based on the implementation of the “Green Credit Guidelines” policy in 2012 in China and analyzes the impact of the green credit policy on enterprises' innovation. The results show that the implementation of the green credit policy has a negative impact on enterprises' innovation. In terms of corporate heterogeneity, the negative effect of green credit policy on enterprises' innovation is greater for state‐owned and high‐leverage enterprises. Furthermore, mechanism analysis results reveal that credit financing cost is an important intermediary for green credit policy to affect corporate innovation but non‐credit financing channels are not obvious.

Suggested Citation

  • Qiaoxin Xie & Yu Zhang & Lei Chen, 2022. "Does green credit policy promote innovation: A case of China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(7), pages 2704-2714, October.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:7:p:2704-2714
    DOI: 10.1002/mde.3556
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Lei Li & Xiaoyu Ma & Shaojun Ma & Feng Gao, 2024. "Role of green finance in regional heterogeneous green innovation: Evidence from China," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-13, December.
    2. Chaoyu Cao & Qibo Chen & Lili Zhu, 2024. "Corporate Greenwashing Unexpectedly Caused by the Green Credit Policy: A Comparison between Environmental Sustainability Information Disclosure and Actual Environmental Protection Investment from Chin," Sustainability, MDPI, vol. 16(17), pages 1-14, August.
    3. Lu, Yuchen & Gao, Yuqiang & Zhang, Yu & Wang, Junrong, 2022. "Can the green finance policy force the green transformation of high-polluting enterprises? A quasi-natural experiment based on “Green Credit Guidelines”," Energy Economics, Elsevier, vol. 114(C).
    4. Wang, Mei Ling, 2023. "Effects of the green finance policy on the green innovation efficiency of the manufacturing industry: A difference-in-difference model," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    5. Yu Liu & Huiping Ding & Biao Sun, 2022. "Does Green Credit Policy Promote or Inhibit Firms’ Green Innovation in China? Moderating Effect of Environmental Information Disclosure," Sustainability, MDPI, vol. 15(1), pages 1-17, December.
    6. Yangjie Liao & Xiaokun Zhou, 2024. "Real green or fake green? Impact of green credit policy on corporate ESG performance," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-13, December.
    7. Kai Wu & E Bai & Hejie Zhu & Zhijiang Lu & Hongxin Zhu, 2023. "Can Green Credit Policy Promote the High-Quality Development of China’s Heavily-Polluting Enterprises?," Sustainability, MDPI, vol. 15(11), pages 1-27, May.
    8. Irfan, Muhammad & Razzaq, Asif & Sharif, Arshian & Yang, Xiaodong, 2022. "Influence mechanism between green finance and green innovation: Exploring regional policy intervention effects in China," Technological Forecasting and Social Change, Elsevier, vol. 182(C).

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