The impact of green credit policy on energy efficient utilization in China

Ma, Xiaowei; Ma, Wei; Zhang, Lin; Shi, Yi; Shang, Yuping; Chen, Huangxin

doi:10.1007/s11356-021-14405-4

Cited by 40 publications

(11 citation statements)

References 45 publications

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“…In regions with strictly enforced green credit policies and a relatively higher proportion of green credit, high-energy-consuming projects are more difficult to access loans and phased out at an accelerated rate, while clean energy projects bloom with incremental financing support, driving the economy to develop sustainably [ 33 ]. In addition, green credit leads fund flow into energy conservation industries, improving energy consumption structure and efficiency [ 34 ]. Besides, since bank credit is the most critical financing tool for enterprises in China, commercial banks’ increasing attention to corporate energy performance can be instructive to other investors’ financing decisions, forcing enterprises to take more practical actions to improve energy performance.…”

Section: Theoretical Analysis and Hypothesesmentioning

confidence: 99%

Does green credit promote green sustainable development in regional economies?—Empirical evidence from 280 cities in China

Bao

2022

PLoS ONE

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Background China has been exploring a sustainable development path that harmonizes economic growth and environmental protection, targeting to build a beautiful China. The role of green finance in adjusting the misallocation of financial resources and leading the green sustainable development of the real economy is receiving increasingly more attention. Currently, green credit accounts for more than 90% of the total green finance funding in China and constitutes the most significant component of the green finance matrix. Whether green credit effectively promotes the green and sustainable development of the regional economy largely determines the success of China’s economic green transformation. Objective Existing studies of green credit mainly focus on its influences on financing, investment, and emission reduction of environmental pollution industries or companies. Extending the literature by exploring whether green credit is effective in promoting green sustainable development and what impact green credit exerts on the upstream (energy inputs), midstream (technological innovation), and downstream (pollution outputs) stages of the green sustainable development value chain, is the leading research objective of this paper. Methods This paper discusses the impact of green credit on green sustainable development based on city panel data from 2012 to 2019. The level of green sustainable development is calculated by the GML index based on SBM directional distance function. The city-level green credit scale is calculated from the green credit issued by banks, weighted by the density of bank branches in a city. Synthetic control methods are employed in the robustness analysis to reduce the impact of endogeneity issues. Results and conclusion The results of this paper indicate that green credit can promote green sustainable development and the impact gradually strengthens over time as the incremental implementations of complementary policies with substantial constraints and incentives, through which pollution control and economic growth achieve a "win-win" situation. Furthermore, the results indicate that green credit reduces the overall amount of energy inputs while optimizing the energy input structure. However, green credit does not boost the green technological level and even crowds out high technical value green innovations. Besides, the pollution reduction effects of green credit are associated with the strength of green credit constraints and the importance of pollution industries in the local economy, which means green credit performs better pollution reduction effects in regions with relatively strong green credit binding effects or in regions where pollution industries are not local economic pillars. The empirical results are further validated through robustness tests, including changing scope and measurement variables and applying the synthetic control method. Limitations Although this paper provides valuable contributions to the research area of green credit and green sustainable development, specific limitations exist in the current study. Firstly, as the official information disclosure of green credit in China is not sufficient, existing studies, including ours, could only use estimation methods through different perspectives to measure green credit, which is overall logical and reasonable but may lose some accuracy. Secondly, since there might be a certain degree of lag in the effect of green credit on the economy, the dynamic impact and long-term effects of green credit deserve further study. Thirdly, considering the characteristics of the Chinese administrative systems, introducing the behavior of local governments and local officials into the analysis of green credit and green sustainable development could be valuable.

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Section: Theoretical Analysis and Hypothesesmentioning

confidence: 99%

Does green credit promote green sustainable development in regional economies?—Empirical evidence from 280 cities in China

Bao

2022

PLoS ONE

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“…An important assumption of RDD is that the groups on both sides of the discontinuity are random ( 35 ). If the allocation into a treatment group or a control group can be controlled by an individual in some way, the assignment variable near the breaking point will be manipulated rather than random selected, resulting in breaking point failure.…”

Section: Empirical Results and Analysismentioning

confidence: 99%

“…If the allocation into a treatment group or a control group can be controlled by an individual in some way, the assignment variable near the breaking point will be manipulated rather than random selected, resulting in breaking point failure. Referring to previous studies ( 35 , 36 ), the density function continuity method was used to test whether the density function of assignment variable is continuous at the breaking point, and the result is illustrated in Figure 2 . It is clear that the assignment variable is smooth without obvious jump at the breaking point, and the confidence interval of the estimated value of the density function on both sides of the breaking point overlaps greatly, indicating that the assignment variable is continuous at the discontinuity, that is, the entry date of the CEPI team to each city is exogenous, and the RDD method is suitable for this study.…”

Section: Empirical Results and Analysismentioning

confidence: 99%

Campaign-style governance of air pollution in China? A comprehensive analysis of the central environmental protection inspection

Feng

Cheng

et al. 2023

Front. Public Health

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Central environmental protection inspection (CEPI) is a major institutional innovation in China's environmental governance, but its effectiveness in improving air quality is still unclear. However, the effectiveness of CEPI is of great significance and can be regarded as an important reference for deepening the reform of environmental governance system in China. This article takes the CEPI as a quasi-natural experiment and uses the regression discontinuity design (RDD) and the difference-in-differences (DID) methods to examine the effectiveness of this policy. The study found that the first round of CEPI reduced the air pollution of cities in the inspected provinces in a short time. Moreover, this positive policy effect persisted in the aftermath of the inspection, but this long-term effect is mainly reflected in PM10 and SO2. Heterogeneity analysis showed that CEPI was only effective in reducing air pollutants of industry-oriented cities, cities in Central and Eastern China, and cities with large or small population size. The moderating effect analysis indicated that a healthy relationship (close and clean) between the local governments and businesses was conducive to reducing air pollution. The research confirmed the presence of “selective” reduction of air pollutants in the long run caused by CEPI, thereby providing new inspiration for the improvement of campaign-style environmental governance and the follow-up CEPI work.

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“…In addition, some scholars have also studied the green effect of green financial policies. These studies generally agree that green financial policies can increase green investment and financing, alleviate financing constraints for green innovation (Liu et al, 2021;Ning et al, 2022), promote green innovation (Jin and Han, 2018), facilitate green development (Ma et al, 2021;Gao et al, 2022), and reduce carbon emissions (Qin and Cao, 2022).…”

Section: Introductionmentioning

confidence: 99%

The impact of green finance on the transformation of energy consumption structure: Evidence based on China

Qin

Zhang

2023

Front. Earth Sci.

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Reducing the use of traditional fossil energy and optimizing the energy consumption structure is an important starting point for China to balance sustainable and stable economic development, dual carbon goals and energy security. Green finance can help improve the energy consumption structure through providing financial support for green development. Based on this, taking the proportions of coal consumption as the index of energy consumption structure, this paper uses panel data for 30 provinces in China from 2009 to 2019, and analyzes the impact of green finance on energy consumption structure and its mechanism. The results show that the development of green finance in China has significantly improved the energy consumption structure, when considering the endogenous and robustness, the conclusion is still valid. In the mid-western region, green finance plays a greater role in improving the energy consumption structure. With the help of the quantile regression model, it is found that the higher the proportion of coal consumption, the greater the improvement effect of green finance on energy consumption structure. With the help of the threshold model, it is found that when exceeding the threshold value, the improvement effect of green finance on energy consumption structure will decline. Both the market and the government can enhance the role of green finance in optimizing the energy consumption structure. According to the research conclusion, the suggestions for improving the energy consumption structure of green finance are given from the aspects of developing green finance, formulating differentiated green finance development strategies, and encouraging green innovation.

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The impact of green credit policy on energy efficient utilization in China

Cited by 40 publications

References 45 publications

Does green credit promote green sustainable development in regional economies?—Empirical evidence from 280 cities in China

Does green credit promote green sustainable development in regional economies?—Empirical evidence from 280 cities in China

Campaign-style governance of air pollution in China? A comprehensive analysis of the central environmental protection inspection

The impact of green finance on the transformation of energy consumption structure: Evidence based on China

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