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Asymmetric impacts of sustainable credit on industrial low-carbon development: Evidence from China

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  • Zhang, Can
  • Wei, Wei
  • Du, Chaofei
  • Abedin, Mohammad Zoynul
  • Lucey, Brian

Abstract

Using Chinese A-share listed industrial enterprises from 2007 to 2021, this paper examines the asymmetric impacts of sustainable credit (SC) on industrial low-carbon development (ILCD) by adopting two-way fixed effects model. The baseline result indicates that SC has the significant incentive effect on ILCD of green enterprises, while it has the significant crowding-out effect on ILCD of polluting enterprises. Mechanism analysis shows that SC significantly incentives green product innovation and green process innovation of green enterprises. However, SC significantly inhibits green process innovation and green product innovation of polluting enterprises. Heterogeneity analysis shows that the incentive effect is reflected in green enterprises with good commercial credit environment and low degree of financialization, while the crowding-out effect is reflected in polluting enterprises with poor commercial credit environment and high degree of financialization. This paper provides new theoretical and empirical evidences for improving SC and promoting ILCD of different types of enterprises.

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  • Zhang, Can & Wei, Wei & Du, Chaofei & Abedin, Mohammad Zoynul & Lucey, Brian, 2025. "Asymmetric impacts of sustainable credit on industrial low-carbon development: Evidence from China," Research in International Business and Finance, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:riibaf:v:80:y:2025:i:c:s0275531925003873
    DOI: 10.1016/j.ribaf.2025.103131
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