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The Impact Mechanism of Green Credit Policy on the Sustainability Performance of Heavily Polluting Enterprises—Based on the Perspectives of Technological Innovation Level and Credit Resource Allocation

Author

Listed:
  • Xiaowei Ding

    (Faculty of Economics, RUDN University, 117198 Moscow, Russia)

  • Ruxu Jing

    (Institute of Economics, Moscow State University, 119991 Moscow, Russia)

  • Kaikun Wu

    (Institute of Economics and Management, Lviv Polytechnic National University, 999146 Lviv, Ukraine)

  • Maria V. Petrovskaya

    (Faculty of Economics, RUDN University, 117198 Moscow, Russia)

  • Zhikun Li

    (Institute of Asian and African Studies, Moscow State University, 119991 Moscow, Russia)

  • Alina Steblyanskaya

    (School of Economics and Management, Harbin Engineering University, Harbin 150009, China)

  • Lyu Ye

    (Institute of Industrial Management, Economics and Trade, Peter the Great St. Petersburg Polytechnic University, 195251 Saint Petersburg, Russia)

  • Xiaotong Wang

    (Faculty of Economics, RUDN University, 117198 Moscow, Russia)

  • Vasiliy M. Makarov

    (Institute of Industrial Management, Economics and Trade, Peter the Great St. Petersburg Polytechnic University, 195251 Saint Petersburg, Russia)

Abstract

Green credit policy (GCP), as one of the key financial instruments to achieve ’carbon peaking’ and ‘carbon neutrality’ targets, provides capital support for the green development of enterprises. This paper explores the impact mechanism of GCP on the sustainability performance of heavily polluting enterprises (HPEs) from the perspectives of technological innovation level (TIL) and credit resource allocation (CRA), using panel data for Chinese A-share listed manufacturing companies from 2010 to 2015 to construct a propensity score matching and differences-in-differences (PSM-DID) model. We find that GCP has a causal effect on corporate sustainability performance (CSP). Although GCP significantly improves CSP, there is no long-term effect. Heterogeneity analysis shows that the relationship between GCP and CSP is only significant in non-state-owned enterprises and in eastern and low-market-concentration enterprises. Mechanism tests indicate that GCP stimulates HPEs to invest more in technological innovation and thereby improves CSP through the innovation compensation effect; the credit constraint and information transfer effects caused by GCP reduce the credit resources available to HPEs but have a significant forced effect on CSP. This paper enriches the study of the economic consequences of GCP and provides implications for stakeholders to improve the green financial system and achieve green transformation of HPEs.

Suggested Citation

  • Xiaowei Ding & Ruxu Jing & Kaikun Wu & Maria V. Petrovskaya & Zhikun Li & Alina Steblyanskaya & Lyu Ye & Xiaotong Wang & Vasiliy M. Makarov, 2022. "The Impact Mechanism of Green Credit Policy on the Sustainability Performance of Heavily Polluting Enterprises—Based on the Perspectives of Technological Innovation Level and Credit Resource Allocatio," IJERPH, MDPI, vol. 19(21), pages 1-26, November.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:21:p:14518-:d:964061
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    1. Riquan Yao & Yingqun Fei & Zhong Wang & Xin Yao & Sasa Yang, 2023. "The Impact of China’s ETS on Corporate Green Governance Based on the Perspective of Corporate ESG Performance," IJERPH, MDPI, vol. 20(3), pages 1-16, January.
    2. Chaofeng Li & Yasir Ahmed Solangi & Sharafat Ali, 2023. "Evaluating the Factors of Green Finance to Achieve Carbon Peak and Carbon Neutrality Targets in China: A Delphi and Fuzzy AHP Approach," Sustainability, MDPI, vol. 15(3), pages 1-21, February.

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