What effect did the Green Credit Policy have on China's energy or emission intensive firms?

Zhang, Q; Xu, L; Wang, K; Shi, X

What effect did the Green Credit Policy have on China's energy or emission intensive firms?

Zhang, Q Xu, L Wang, K Shi, X

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Publisher:: EMERALD GROUP PUBLISHING LTD
Publication Type:: Journal Article
Citation:: International Journal of Emerging Markets, 2021, ahead-of-print, (ahead-of-print)
Issue Date:: 2021-01-01

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Field	Value	Language
dc.contributor.author	Zhang, Q
dc.contributor.author	Xu, L
dc.contributor.author	Wang, K
dc.contributor.author	Shi, X https://orcid.org/0000-0001-9653-7395
dc.date.accessioned	2021-12-05T09:00:41Z
dc.date.available	2021-12-05T09:00:41Z
dc.date.issued	2021-01-01
dc.identifier.citation	International Journal of Emerging Markets, 2021, ahead-of-print, (ahead-of-print)
dc.identifier.issn	1746-8809
dc.identifier.issn	1746-8817
dc.identifier.uri	http://hdl.handle.net/10453/152092
dc.description.abstract	Purpose: The role of energy or emission intensive firms face contradictory demands from advancing economic development and environmental improvement and protection and thus require appropriate policy interventions to balance the two needs. China's “Green Credit” policy that restricts loans to energy or emission intensive firms provides an example to study the impact of these kinds of policy intervention. Design/methodology/approach: Using the data of all A-share listed companies in Shanghai and Shenzhen stock exchanges, our paper empirically analyzes the impact of the Green Credit Policy on performance of these energy or emission intensive firms. Findings: (1) Using difference-in-difference (DID) and propensity score matching (PSM)-DID method and the dynamic effect method, we found that from 2012 to 2015, the Green Credit Policy had an inhibiting effect on the performance of energy or emission intensive firms. This inhibiting effect was gradually weakened in 2016, and it turned into a positive promoting effect in 2017; (2) The performance's change of these firms around 2015 showed that Green Credit promoted the green transformation and upgrading of these firms; (3) Loans were helpful to the performance of energy or emission intensive firms to some extent, but government subsidies were not significant. Originality/value: The results suggest that the government, banks and other institutions should dynamically assess the implementation results of the Green Credit Policy on energy or emission intensive firms.
dc.language	English
dc.publisher	EMERALD GROUP PUBLISHING LTD
dc.relation.ispartof	International Journal of Emerging Markets
dc.relation.isbasedon	10.1108/IJOEM-04-2021-0555
dc.rights	The version of record is available at https://doi.org/10.1108/ijoem-04-2021-0555. The full citation is as follows: [Zhang, Q., Xu, L., Wang, K., and Shi, X. (2021). What effect did the Green Credit Policy have on China’s energy or emission intensive firms?
dc.rights	info:eu-repo/semantics/openAccess
dc.subject	1402 Applied Economics, 1503 Business and Management, 1505 Marketing
dc.title	What effect did the Green Credit Policy have on China's energy or emission intensive firms?
dc.type	Journal Article
utslib.citation.volume	ahead-of-print
utslib.for	1402 Applied Economics
utslib.for	1503 Business and Management
utslib.for	1505 Marketing
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/DVC (International)
pubs.organisational-group	/University of Technology Sydney/DVC (International)/Australia-China Relations Institute
utslib.copyright.status	open_access	*
dc.date.updated	2021-12-05T09:00:39Z
pubs.issue	ahead-of-print
pubs.publication-status	Published
pubs.volume	ahead-of-print
utslib.citation.issue	ahead-of-print

Abstract:

Purpose: The role of energy or emission intensive firms face contradictory demands from advancing economic development and environmental improvement and protection and thus require appropriate policy interventions to balance the two needs. China's “Green Credit” policy that restricts loans to energy or emission intensive firms provides an example to study the impact of these kinds of policy intervention. Design/methodology/approach: Using the data of all A-share listed companies in Shanghai and Shenzhen stock exchanges, our paper empirically analyzes the impact of the Green Credit Policy on performance of these energy or emission intensive firms. Findings: (1) Using difference-in-difference (DID) and propensity score matching (PSM)-DID method and the dynamic effect method, we found that from 2012 to 2015, the Green Credit Policy had an inhibiting effect on the performance of energy or emission intensive firms. This inhibiting effect was gradually weakened in 2016, and it turned into a positive promoting effect in 2017; (2) The performance's change of these firms around 2015 showed that Green Credit promoted the green transformation and upgrading of these firms; (3) Loans were helpful to the performance of energy or emission intensive firms to some extent, but government subsidies were not significant. Originality/value: The results suggest that the government, banks and other institutions should dynamically assess the implementation results of the Green Credit Policy on energy or emission intensive firms.

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http://hdl.handle.net/10453/152092