Do Green Credit Affect Green Total Factor Productivity? Empirical Evidence from China

Abstract

Understanding the effects of green credit on green total factor productivity (GTFP) is conductive to promoting the sustainable economy development. This paper examines the total effects, influence mechanism, and heterogeneous impacts of green credit on GTFP based on GTFP data of 30 provinces in China from 2008 to 2017. The findings show that, firstly, on the whole, green credit significantly increases GTFP, which is tested by the panel regression model. Secondly, according to the result of the panel quantile model, the increasing effect of green credit on GTFP is strengthened by the improvement of GTFP. Thirdly, green credit has heterogeneous impact on GTFP, which is reflected in economic development with different level, especially for different degrees of environmental regulation. Fourthly, under the full samples, green credit impacts GTFP through green technology innovation, but it has no effect on energy consumption structure. Besides, the influence mechanism is heterogeneous in the variation of sample characteristics. Finally, some significant policy recommendations are provided for policymakers based on these conclusions.

Research on the effect of green credit on ecological welfare performance: Evidence from China

“…In the subsequent studies, it is advisable to refer to the existing research methods (Sun et al, 2020) to further analyze the nonlinear impact of green credit policy. In addition, the heterogeneity effect of green credit can be analyzed according to regional or development level differences (Hu et al, 2022).…”

“…On the one hand, research from the microscopic perspective mainly focuses on the impacts of green credit on the operational performance of commercial banks (Yin et al, 2021;Zhou et al, 2021), corporate technological innovation (Hong et al, 2021), and investment efficiency (Wang et al, 2020;Yao et al, 2021). On the other hand, most studies from the macro perspective focus on the impact of green credit policy on regional Total Factor Productivity (TFP) (Hu et al, 2022), technological innovation (Tan et al, 2022), industrial structure upgrading (Hu et al, 2020), energy consumption structure (Ma X. et al, 2021), etc.…”

Exploring the Mechanism of the Impact of Green Finance and Digital Economy on China’s Green Total Factor Productivity

“…At this time, their production and operation behaviors need to be supervised by relevant supervision departments, and the funds they obtain through green finance channels need to be used in green-related industries, thus improving [ 31 ]. The impact of green finance on tends to show different effects in stages [ 32 ]. In the short term, the transformation of highly polluting industries and the establishment of new green industries often require large amounts of financial support.…”

How green credit policy shapes financial performance: Evidence from Chinese listed construction energy-saving enterprise

“…Many studies have investigated green credit and environmental protection, business operations, and industrial structure (Hong et al, 2021;Hu et al, 2022;Li et al, 2022). For example, Liu et al (2021) studied the relationship between green credit policy and enterprises' green technology innovation performance.…”

“…Green credit can improve the efficiency of resource allocation, continuously promote the advancement of the industrial structure, and rationalization of the industrial structure (Zhu, 2022). At the same time, the introduction of green credit policy can also encourage construction enterprises to actively improve environment protection and energy-efficiency technologies, thus efficiently solving the problem of environmental pollution (Hu et al, 2022).…”