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Characteristics of Green Loan Users and the Green Policy Mix

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  • Anna L. SOBIECH
  • UCHIDA Hirofumi

Abstract

We analyse the usage of green loans under a public green loan program and document a positive link with borrower financial health. Green loan users have better credit ratings, higher sales growth, and lower leverage. The link remains stable in face of significantly changing conditions for green investments and heightened green policy uncertainty induced by changes in governments’ green policy mix. Green loan users also exhibit better ex-post performance and lower default probability. The results imply that the screening undertaken by the lender matters for efficient green loan provision and highlight the important role of public loan programs in the green policy mix.

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  • Anna L. SOBIECH & UCHIDA Hirofumi, 2023. "Characteristics of Green Loan Users and the Green Policy Mix," Discussion papers 23072, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:23072
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