Abstract
Reducing carbon emissions from highly polluting enterprises is crucial to meeting the world's overall carbon emission reduction targets. Green credit policy can be effective in guiding enterprises to reduce their carbon emissions and is essential to achieving the dual-carbon targets. This study uses micro-data from a 2017–2022 follow-up survey of industrial enterprises in China and a quasi-natural experiment to evaluate whether green credit policy aligned with the dual-carbon targets enable highly polluting enterprises to become “green” by reducing emissions. The results show that green credit policy can lead highly polluting enterprises to significantly reduce carbon emissions, and total factor productivity (TFP) growth plays an intermediary role in this transition. The different impact of green credit policy on TFP may impede the greening process for highly polluting enterprises, with this hindering effect exhibiting scale heterogeneity. This study offers empirical evidence for evaluating green credit policy aligned with China's dual-carbon target and provide insights into leveraging green credit policy to advance this process.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
