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Green investment strategies and bank-firm relationship: a firm-level analysis

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  • Pasquale Marcello Falcone

    (Bioeconomy in Transition Research Group, IdEA, Unitelma Sapienza - University of Rome)

Abstract

This paper investigates the determinants of firm's green investment strategies in equipment for pollution control. It uses micro-data from a large survey of Italian manufacturing firms from 2001 to 2006. In particular, we test whether the length of the firm-bank relationship affects the firm's probability of investing in environmentally friendly equipment. Our findings show that a longer relationship with the main bank fosters firms' involvement in green investment strategies in order to reduce their environmental impact. Conversely, the presence of a multiple credit relationship could concretely hinder a firm's investments towards environmental innovations.

Suggested Citation

  • Pasquale Marcello Falcone, 2018. "Green investment strategies and bank-firm relationship: a firm-level analysis," Economics Bulletin, AccessEcon, vol. 38(4), pages 2225-2239.
    • Handle: RePEc:ebl:ecbull:eb-18-00383
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    More about this item

    Keywords

    green investment strategy; bank-firm relationship; environmental innovation; probit model;
    All these keywords.

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • G2 - Financial Economics - - Financial Institutions and Services

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