Green credit policy and corporate productivity: Evidence from a quasi-natural experiment in China
Date
2022-02-01Source Title
Technological Forecasting and Social Change
Print ISSN
0040-1625
Electronic ISSN
1873-5509
Publisher
Elsevier Inc.
Volume
177
Pages
121516- 1 - 121516- 19
Language
English
Type
ArticleItem Usage Stats
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Abstract
Taking the implementation of the “Green Credit Guidelines” in China in 2012 as an exogenous shock, we adopt the difference-in-differences (DIDs) method to explore the influence of the green credit policy on total factor productivity (TFP). We show evidence of a significant and positive correlation between green credit and corporate total factor productivity, and this result is robust to a series of robustness tests. In addition, the improvement is particularly evident for non-SOEs, small-scale firms, firms with weak external supervision, and firms in developed areas of eastern China. Moreover, the green credit policy mainly affects corporate total factor productivity through promoting technological innovation and enhancing resource allocation efficiency. Overall, green credit promotes the win-win development of the environment and the economy.
Keywords
Green credit policyTotal factor productivity
Technological innovation
Resource allocation efficiency