Green credit and commercial credit: Secondary allocation of credit resources from the perspective of supply and demand

Negative externalities of environmental policies need to be urgently incorporated into the governance framework: the non-greening allocation of commercial credit can weaken the expected effectiveness of environmental policies. This paper examines the behavioral tendencies of firms in response to credit constraints based on the supply and demand perspectives of commercial credit. It also analyzes the strategic responses of enterprises based on the supply and demand sides of the secondary allocation of credit resources. The results of the study show that the green credit policy (GCP) promotes the net commercial credit of polluting enterprises, which mainly stems from the reduction of the external commercial credit supply of polluting enterprises, and the commercial credit acquisition is not significant. From the mechanism analysis, GCP increases the net commercial credit of polluting enterprises through internal control and external coordination. In addition, green credit policy has a more significant effect on the net commercial credit of state-owned enterprises, eastern regions and enterprises with weaker bargaining power. Further analysis shows that the supply side of the secondary allocation tends to provide commercial credit to enterprises that continue to engage in polluting production to achieve credit monopoly, and the demand side of the secondary allocation achieves green transformation by breaking the cost effect. The research in this paper enriches the analysis of contextual factors on the implementation effect of GCP, and provides theoretical basis and practical inspiration for scientific and rational promotion of economic development and environmental protection.