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Green Credit Policy, Institution Supply and Enterprise Green Innovation

by Chunji Zheng a,b orcid Feng Deng a orcid Chengfeng Zhuo c,* orcid  and  Weiheng Sun d orcid
a
School of Economics and Management, Xinjiang University, Urumqi, China
b
Center for Innovation Management Research in Xinjiang, Xinjiang University, Urumqi, China
c
Institute of Guangdong, Hong Kong and Macao Development Studies, Sun Yat-sen University, Guangzhou, China
d
Business School, Imperial College London, London, UK
*
Author to whom correspondence should be addressed.
Received: 25 July 2022 / Accepted: 3 September 2022 / Published Online: 13 September 2022

Abstract

Green credit policy (GCP) relies on financial means to promote environmental governance. Whether it can achieve the goals of economic development and environmental protection, especially in the context of different institutional supplies, remains to be scientifically tested. Based on the implementation of China’s Green Credit Guidelines in 2012, this study uses panel data of Chinese companies from 2009 to 2019 to explore the influence of GCP on green technology innovation and the role of institutional supply in it. The results show that GCP is instrumental in promoting green innovation in heavily polluting enterprises, and the promotion effect is heterogeneous based on green patent types, firms’ ownership, and regional financial development levels. Further analysis finds that the supply of environmental protection systems by local governments can strengthen the green innovation effect of GCP. However, the institutional supply of innovation has not yet released a promotional effect. This paper finds that green credit can be used as an environmental governance tool and provides inspiration for local governments to issue environmental protection policies scientifically.


Copyright: © 2022 by Zheng, Deng, Zhuo and Sun. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
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ACS Style
Zheng, C.; Deng, F.; Zhuo, C.; Sun, W. Green Credit Policy, Institution Supply and Enterprise Green Innovation. Journal of Economic Analysis, 2022, 1, 3. https://doi.org/10.58567/jea01010002
AMA Style
Zheng C, Deng F, Zhuo C, Sun W. Green Credit Policy, Institution Supply and Enterprise Green Innovation. Journal of Economic Analysis; 2022, 1(1):3. https://doi.org/10.58567/jea01010002
Chicago/Turabian Style
Zheng, Chunji; Deng, Feng; Zhuo, Chengfeng; Sun, Weiheng 2022. "Green Credit Policy, Institution Supply and Enterprise Green Innovation" Journal of Economic Analysis 1, no.1:3. https://doi.org/10.58567/jea01010002
APA style
Zheng, C., Deng, F., Zhuo, C., & Sun, W. (2022). Green Credit Policy, Institution Supply and Enterprise Green Innovation. Journal of Economic Analysis, 1(1), 3. https://doi.org/10.58567/jea01010002

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