OpenLB
Open Library of Bioscience
Advanced Search
Environmental science and pollution research international
Feb 01, 2023;

Will green credit promote corporate environmental protection investment?

Hao Hu, Xiaoxiao Liu, Huifang Pei, Yalin Chen, Zi Ye, Hanwen Cui, Chen Xue
Author Information
  1. Hao Hu: School of Economics, Shanghai University, Shanghai, 200444, China.
  2. Xiaoxiao Liu: School of Economics, Shanghai University, Shanghai, 200444, China. liusunny@shu.edu.cn. ORCID
  3. Huifang Pei: School of Economics, Shanghai University, Shanghai, 200444, China.
  4. Yalin Chen: School of Economics, Shanghai University, Shanghai, 200444, China.
  5. Zi Ye: School of Economics, Shanghai University, Shanghai, 200444, China.
  6. Hanwen Cui: School of Economics, Shanghai University, Shanghai, 200444, China.
  7. Chen Xue: School of Economics, Shanghai University, Shanghai, 200444, China.
PMID: 36725799 DOI: 10.1007/s11356-023-25483-x

Abstract

As a national macro policy, green credit is put forward in essence to guide the green transformation of enterprises. While realizing industrial upgrading and economic growth, the state should not ignore the problem of ecological environment. "Two high and one surplus" enterprises are often the key force to promote the development of the national economy, and the uncertainty of environmental protection investment brings difficulties to the decision-making of these enterprises. Therefore, can this policy promote "two high and one surplus" enterprises to increase investment in environmental protection? Based on the panel data of A-share listed companies from 2007 to 2020, this paper takes the implementation of "Green Credit Guidelines (2012)" as a quasi-natural experiment, using differences-in-differences model to explore the impact of this policy on environmental protection investment of "two high and one surplus" enterprises. The empirical results show that the green credit policy significantly reduces the environmental protection investment of "two high and one surplus" enterprises, and the policy effect has stronger inhibitory on private enterprises and enterprises located in regions that have a higher level of financial development. The research of this paper enriches the influencing factors of enterprise environmental governance behavior and the micro evidence of the effect of green credit policy, as well as enlightenment for promoting the construction of ecological civilization and realizing green development.

Keywords

Corporate environmental investment Credit constraints Credit policy Differences-in-differences The Green Credit Guidelines “Two high and one surplus” enterprises

References

  1. Brandt L, Li H (2002) Bank discrimination in transition economies: ideology, information or incentives? William Davidson Institute Working Papers Series 31(3):387–413. https://doi.org/10.1016/s0147-5967(03)00080-5
  2. Cai XQ, Lu Y, Wu MQ (2016) Does environmental regulation drive away inbound foreign direct investment? Evidence from a quasi-natural experiment in China. J Dev Econ 123:73–85. https://doi.org/10.1016/j.jdeveco.2016.08.003 [DOI: 10.1016/j.jdeveco.2016.08.003]
  3. Cai HJ, Wang XY, Tan C (2019) Green credit policy, incremental bank loans and environmental protection effect. Accounting Res 3:88–95. https://doi.org/10.3969/j.issn.1003-2886.2019.03.012 [DOI: 10.3969/j.issn.1003-2886.2019.03.012]
  4. Chen XX, Shi YY, Song XZ (2019) Green credit policy, incremental bank loans and environmental protection effect. Studies of International Finance 12:13–22. https://doi.org/10.16475/j.cnki.1006-1029.2019.12.002
  5. Clarkson PM, Richardson GD (2004) The market valuation of environmental capital expenditures by pulp and paper companies. Accounting Review 79(2):329–353. https://doi.org/10.2308/accr.2004.79.2.329 [DOI: 10.2308/accr.2004.79.2.329]
  6. Cui GH, Jiang YB (2019) The influence of environmental regulation on the behavior of enterprise environmental governance: based on a quasi-natural experiment of new environmental protection law. Business Management Journal 41(10):54–72. https://doi.org/10.19616/j.cnki.bmj.2019.10.004
  7. Gray WB, Shadbegian RJ (1993) Environmental regulation and manufacturing productivity at the plant level. Working Paper. https://doi.org/10.3386/w4321
  8. Jacobson LS, Lalonde RJ, Sullivan DG (1993) Earnings losses of displaced workers. American Economic Review 83(4):685–709. https://doi.org/10.2307/2117574 [DOI: 10.2307/2117574]
  9. Li YX, Zeng WQ, Ma K, Chen KJ (2015) External governance environment, ownership and efficiency of listed companies’ investment. Nankai Business Review 18(01):25–36. https://doi.org/10.3969/j.issn.1008-3448.2015.01.004 [DOI: 10.3969/j.issn.1008-3448.2015.01.004]
  10. Li L, Tao F (2012) Selection of optimal environmental regulation intensity for Chinese manufacturing industry——based on the green TFP perspective. China Industrial Economics, no.05, pp.70–82. https://doi.org/10.19581/j.cnki.ciejournal.2012.05.006
  11. Linde MECVD (1995) Toward a new conception of the environment-competitiveness relationship. J Econ Perspect 9(4):97–118. https://doi.org/10.1257/jep.9.4.97 [DOI: 10.1257/jep.9.4.97]
  12. Orsato RJ (2006) Competitive environmental strategies: when does it pay to be green? Calif Manage Rev 48(2):127–143. https://doi.org/10.2307/41166341 [DOI: 10.2307/41166341]
  13. Song ML, Wang SH (2013) Environmental regulation,technological progression and economic growth. Econ Res J 48(03):122–134. http://doi.org/CNKI:SUN:JJYJ.0.2013-03-019
  14. Su DW, Lian LL (2018) Does green credit policy affect corporate financing and investment? Evidence from publicly listed firms in pollution - intensive industries. Journal of Financial Research, no.12, pp.123–137. http://doi.org/CNKI:SUN:JRYJ.0.2018-12-008
  15. Wang X, Wang Y (2021) Research on the green innovation promoted by green credit policies. Journal of Management World 37(06):173–188+11. https://doi.org/10.19744/j.cnki.11-1235/f.2021.0085
  16. Wang YL, Lei XD, Long RY (2021) Can green credit policy promote the corporate investment efficiency? ——based on the perspective of high-pollution enterprises’ financial resource allocation. China Population Resources and Environment, vol.31, no.01, pp.123–133. https://doi.org/10.12062/cpre.20200629
  17. Wen H, Lee C, Zhou F (2021) Green credit policy, credit allocation efficiency and upgrade of energy-intensive enterprises. Energy Economics 94(2):105–116. https://doi.org/10.1016/j.eneco.2021.105099 [DOI: 10.1016/j.eneco.2021.105099]
  18. Wu J, Deng Y, Huang J, Morck R, Yeung B (2014) Incentives and outcomes: China’s environmental policy. Capitalism and Society 9(1):1–41. https://doi.org/10.2139/ssrn.2206043 [DOI: 10.2139/ssrn.2206043]
  19. Wu KQ, Hong GX (2015) Economic growth mode: resources, environment and institutions [J]. Economic Issues Exploration (06): 55–59. http://doi.org/CNKI:SUN:JJWS.0.2015-06-009
  20. Xu XX, Li SJ (2015) Political resource and environmental pollution. China Journal of Economics 2(01):1–24. https://doi.org/10.16513/j.cnki.cje.2015.01.001
  21. Zhang C, Lu Y, Guo L, Yu TS (2011) The intensity of environmental regulation and technological progress of production. Economic Research Journal 46, no.02, pp.113–124. http://doi.org/CNKI:SUN:JJYJ.0.2011-02-010
  22. Zhu PF, Zhang ZY, Jiang GL (2011) Empirical study of the relationship between FDI and environmental regulation: an intergovernmental competition perspective. Econ Res J 46(06):133–145. http://doi.org/CNKI:SUN:JJYJ.0.2011-06-013
Journal Article

Word Cloud

Created with Highcharts 10.0.0enterprisespolicyenvironmentalgreenhighoneinvestmentcreditsurplus"protectionCreditpromotedevelopment"twonationalrealizingecologicalpaperGuidelineseffectmacroputforwardessenceguidetransformationindustrialupgradingeconomicgrowthstateignoreproblemenvironment"Twooftenkeyforceeconomyuncertaintybringsdifficultiesdecision-makingThereforecanincreaseprotection?BasedpaneldataA-sharelistedcompanies20072020takesimplementation"Green2012"quasi-naturalexperimentusingdifferences-in-differencesmodelexploreimpactempiricalresultsshowsignificantlyreducesstrongerinhibitoryprivatelocatedregionshigherlevelfinancialresearchenrichesinfluencingfactorsenterprisegovernancebehaviormicroevidencewellenlightenmentpromotingconstructioncivilizationWillcorporateinvestment?CorporateconstraintsDifferences-in-differencesGreen“Twosurplus”

Similar Articles

Cited By