Abstract
Based on the dataset of Chinese A-share market firms between 2004 and 2019 and the implementation of the Green Credit Guidelines, this study explores the impact of green credit policy (GCP) on the sustainable development of pollution-intensive enterprises (PIEs) in terms of their financing, growth, green technology progress, and environment protection. Using a Difference-in-Difference model, the empirical analysis reveals that GCP inhibits PIEs’ financing and investment, and reduces employment opportunities. It hinders PIEs’ green innovation, but does not reduce their investment in green technology projects. Though it does not encourage investment in environment protection, it drives PIEs to discharge fewer types of pollutants. The effect of GCP on PIEs’ growth and green technology progress is similar across various enterprises. However, state-owned enterprises, large firms and those located in the eastern region are more likely to discharge fewer types of pollutants with the implementation of GCP. This study suggests that green finance has some limitations when promoting the sustainable development of pollution intensive industries. It is necessary to accelerate the development of transition finance to support the green transformation of PIEs, and prevent potential economic and social risks such as job losses due to the shrinkage of PIEs.
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.
