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Environmental courts, green credit, and corporate carbon reduction

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  • Li, Yilin
  • Li, Keying
  • Li, Juan
  • Zheng, Yinglong
  • Tian, Grace (Li)
  • Wang, David (Han)

Abstract

Using data from Chinese listed companies from 2008 to 2022, this study examines the impact of environmental courts and green credit on corporate carbon emission reduction. The findings indicate that green credit, as an innovative financial policy tool, significantly contributes to lowering corporate carbon footprints. Additionally, it indirectly supports the transition to a low-carbon economy by enhancing overall factor productivity. Moreover, environmental courts positively influence the effectiveness of green credit in reducing emissions, though this moderating effect varies considerably across firms with different ownership structures and pollution levels.

Suggested Citation

  • Li, Yilin & Li, Keying & Li, Juan & Zheng, Yinglong & Tian, Grace (Li) & Wang, David (Han), 2025. "Environmental courts, green credit, and corporate carbon reduction," Finance Research Letters, Elsevier, vol. 79(C).
    • Handle: RePEc:eee:finlet:v:79:y:2025:i:c:s1544612325005379
    DOI: 10.1016/j.frl.2025.107274
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    References listed on IDEAS

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    Cited by:

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    2. Zhao, Wenqi & Toh, Moau Yong & Zhang, Yongmin, 2025. "The price of green justice: Environmental courts and cross-regional capital immobility," Finance Research Letters, Elsevier, vol. 85(PA).

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