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

Zhang, Kexian; Yan, Wang; Huang, Zimei

doi:10.3390/su13169331

Cited by 23 publications

(11 citation statements)

References 43 publications

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“…As environmental regulations become stricter and the "double-carbon target" is implemented, the increasing risk of environmental violations increases the chance that heavily polluting enterprises will not be able to repay their debts (Guo et al, 2022;Lian et al, 2022). Banks, as creditors, bear greater investment risks than shareholders, while corporate managers, in pursuit of their own interests or short-term interests, tend to reduce investment in real enterprises and tend to invest idle funds in financial products; however, investments in financial products entail great uncertainty, and once such an investment fails, a major debt crisis in terms of corporate funds may arise and harm the interests of creditors (Hu et al, 2020;Zhang et al, 2021;Zhu, 2022;Ge and Zhu, 2022). Therefore, banks apply credit rationing to heavily polluting enterprises to mitigate credit and environmental risks and safeguard their own credit quality.…”

Section: Theoretical Analysis and Hypothesis Formulationmentioning

confidence: 99%

Can green credit policy under the concept of green economy curb corporate financialization to promote sustainable development?

Strielkowski²,

Li³

et al. 2023

Front. Environ. Sci.

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Under the concept of green economy, discovering how to utilize the Green Credit Guidelines in a way that guides enterprises to focus on their industries and to promote sustainable development has become an important and urgent objective. It is also conducive to the successful implementation of the “double-carbon target”. This paper uses Chinese A-share listed enterprises from 2007–2018 as its research object to explore whether green credit policy is conducive to reducing the financialization behavior of heavily polluting enterprises to curb their transformation from real to virtual. It is found that the financialization of heavily polluting enterprises has significantly decreased since the implementation of the Green Credit Guidelines in 2012, and these results remain unchanged after a series of robustness tests. A heterogeneity analysis shows that state-owned enterprises are subject to stronger policy effects than non-state-owned enterprises; furthermore, the studied policy effects are stronger in the eastern regions of China than in its central and western regions, and these effects are stronger in green provinces than in polluting provinces. A mechanism study finds that credit constraints and corporate innovation play a partially mediating role in the effect of green credit policy on corporate financialization. Further studies find that both the level of internal corporate governance and external monitoring contribute to the disincentivizing effect of green credit policy on financialization. Moreover, through an exploration of the possible economic consequences of the examined policy, it is found that the green credit policy reduces corporate financialization in favor of reducing inefficient corporate investment and major shareholders’ tunneling so that the level of corporate investor protection is improved. The findings validate the effectiveness of the Green Credit Guidelines and provide empirical evidence and empirical support for reducing corporate financialization to curb enterprises’ transformation from real to virtual and thus promoting the development of sustainability.

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Section: Theoretical Analysis and Hypothesis Formulationmentioning

confidence: 99%

Can green credit policy under the concept of green economy curb corporate financialization to promote sustainable development?

Strielkowski²,

Li³

et al. 2023

Front. Environ. Sci.

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show abstract

“…The green credit policy favors low energy-consumption and lowpollution enterprises. In order to acquire loans, economic organizations will prefer to employ clean and renewable energy to replace fossil energy in production (Zhang et al, 2021b), which can minimize production pollution and optimize energy consumption structure. In addition, the implementation of green credit forces enterprises to carry out technological innovation and implement traditional energy transformation (Guo et al, 2019), which can promote the transformation of social energy consumption to a clean consumption reduction model.…”

Section: The Mediation Effect Of Energy Consumption Structurementioning

confidence: 99%

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

Zhang

Cao

et al. 2022

Front. Environ. Sci.

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Achieving high-quality economic development is a crucial feature of China’s new development stage. As an environmental regulation tool by implementing a differentiated credit policy, green credit is an inevitable choice to achieve high-quality economic development. In this paper, ecological welfare performance is used to measure the level of high-quality economic development. And based on the panel data of 30 provinces during 2008–2019, the spatial Durbin model and mediating effect model are used to empirically study the direct and indirect effect of green credit on ecological welfare performance in China. The results show that: (1) China’s ecological welfare performance shows the positive global spatial correlation in the overall spatial scope, with local characteristics of high–high aggregation and low–low aggregation. (2) Green credit can significantly promote the ecological welfare performance of local regions, but has a negative spatial spillover effect on the ecological welfare performance of adjacent regions. (3) Green credit can boost ecological welfare performance by improving technological innovation, industrial structure upgrading, and energy consumption structure. Based on these conclusions, the policy recommendations are put forward.

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“…Bei and Wang (2023) believes that due to the reduction of energy demand caused by the global economic recession, renewable energy projects have lost the interest of public and private capital participation, and more need green credit to help them practice sustainable goals. Zhang et al (2021) found that green credit effectively promoted financing in the renewable energy sector and played a mediating role for short-term debt, but was insignificant against long-term debt. The research of Ren et al (2020) found that the impact of green financial policy on China's non-fossil energy consumption continues to be insufficient and lacks continuity.…”

Section: Introductionmentioning

confidence: 99%

Does the green credit policy promote the technological innovation of clean energy enterprises? Empirical evidence from China

Tian²

2023

Front. Energy Res.

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The technological innovation of clean energy enterprises is conducive to the transformation of energy structure, and the green credit policy is just a potential opportunity for clean energy enterprises to seek financing convenience. This paper constructs quasi-natural experiments during two different lengths of period (2008–2015 and 2008–2020) based on the 2012 Green Credit Guidelines, selecting a group of A-share listed clean energy enterprises and non-clean energy enterprises as samples. The aim is to examine the impact of green credit policies on the technological innovation of clean energy enterprises. This paper further conducts mechanism tests as well as heterogeneity analysis on the basis of the results. The results show that green credit policies can promote technological innovation for clean energy enterprises, and this effect is reinforced with the accumulation of years following policy implementation. The mechanism test indicates that green credit policies affect the level of technological innovation of clean energy enterprises through credit cost and financing constraints. The heterogeneity analysis demonstrates that the impact of green credit policies is more significant in the non-state-owned enterprises and economically developed regions. The results provide insights for the promotion of green credit policy and the ultimate transformation of China’s energy structure, thus providing reference for developing countries and emerging economies. The formulation of green credit policy should take into account the long-term effect, reduce the burden of enterprises from the perspective of credit cost and financing constraints, and also expand the influence of the policy in state-owned enterprises and underdeveloped areas.

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

Cited by 23 publications

References 43 publications

Can green credit policy under the concept of green economy curb corporate financialization to promote sustainable development?

Can green credit policy under the concept of green economy curb corporate financialization to promote sustainable development?

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

Does the green credit policy promote the technological innovation of clean energy enterprises? Empirical evidence from China

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