Abstract
Green technology innovation is regarded as an important means to achieve sustainable development. Countries all over the world mainly implement green technology innovation policies from the aspects of environmental regulation and financing constraints. The effect of financing constraint policy on enterprise green technology innovation remains to be investigated. Based on the event of “green credit guidelines” issued by China Banking Regulatory Commission in 2012, this paper collects the panel data of China’s 2825 listed companies from 2007 to 2018, constructs a difference-in-difference model, and studies the impact of green credit guidelines on corporate green technology innovation and its mechanism. The empirical results show: First, green credit guidelines can promote corporate green technology innovation on the whole. Second, the mechanism of green credit on enterprise green technology innovation is identified. Green credit guidelines mainly limited green technology innovation through reducing debt financing, rather than through financing constraints. Third, the impact of green credit guidelines on green technology innovation is heterogeneous. Green credit guidelines have a significant effect on the green technology innovation of state-owned and large enterprises, but have no effect on the green technology innovation of non-state-owned and small ones.
Highlights
Green technology innovation is considered as an important means to achieve sustainable development
The results show that green credit policy mainly reduces green technology innovation through the level of short-term debt and long-term debt financing, rather than through financing constraints
These results indicate that green credit guidelines can reduce the level of long-term debt and financing debt of state-owned enterprises rather than the level of short-term debt
Summary
Green technology innovation is considered as an important means to achieve sustainable development. The government generally implements green technology innovation policy from two aspects, namely environmental regulation and financing restriction. Jaffe and Palmer [7] and Brunnermeier and Cohen [8] are the first to carry out empirical research in this field They use the data of the American manufacturing industry to confirm that environmental regulation can promote corporate innovation to a certain extent. Environmental regulation may bring additional governance costs to firms, which will reduce the resources available to corporates, reducing the level of technological innovation [16]. Countries all over the world have issued a series of financing policies to encourage green technology innovation; for instance, in 1991, Poland established the environmental protection bank, which focuses on supporting investment projects to promote environmental protection.
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