Green Credit Policy, Institution Supply and Enterprise Green Innovation

Authors

  • Chunji Zheng School of Economics and Management, Xinjiang University, Urumqi, China
  • Feng Deng Center for Innovation Management Research in Xinjiang, Xinjiang University, Urumqi, China
  • Chengfeng Zhuo Institute of Guangdong, Hong Kong and Macao Development Studies, Sun Yat-sen University, Guangzhou, China https://orcid.org/0000-0002-6853-8005
  • Weiheng Sun Business School, Imperial College London, London, UK https://orcid.org/0009-0006-3102-412X

DOI:

https://doi.org/10.58567/jea01010002

Keywords:

Green credit policy; Government system supply; Enterprise green innovation; Difference in Difference model; Regulatory mechanism

Abstract

Green credit policy (GCP) relies on financial means to promote environmental governance. Whether it can achieve the dual goals of economic development and environmental protection, especially in the context of different institution supply, remains to be scientifically tested. Taking the implementation of China's green credit guidelines in 2012 as a quasi-natural experiment, this study uses the panel data of China's A-share listed companies from 2009 to 2019 to explore the impact of GCP on the green technology innovation of heavily polluting enterprises and the role of institution supply in it. It is found that the GCP plays a significant role in promoting the green innovation of heavily polluting enterprises, and the conclusion is still valid after a series of robustness tests. Further analysis finds that the supply of environmental protection system by local governments can strengthen the green innovation effect of GCP. However, the institution supply of innovation has not yet released a significant positive impact. In addition, the impact of GCP on green innovation of heavily polluting enterprises shows significant heterogeneity due to the differences in the types of green patents, the nature of enterprise property rights and the level of regional financial development. This paper analyzes the policy effect of green credit from the perspective of micro-enterprise green innovation, and brings the institution supply of local government into the analysis framework, so as to clarify the relationship between green credit and green innovation on the one hand. At the same time, it also provides inspiration for local governments to scientifically issue environmental protection policies.

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Published

2022-09-13

How to Cite

Zheng, C., Deng, F., Zhuo, C., & Sun, W. (2022). Green Credit Policy, Institution Supply and Enterprise Green Innovation. Journal of Economic Analysis, 1(1), 20–34. https://doi.org/10.58567/jea01010002

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