Abstract
Green credit policy has been increasingly critical in easing financing restraints on green innovation. China's Green Credit Guidelines (GCGs) limit loans to industries with high pollution, high energy intensity and overcapacity (THOS industries), and provide financial support to non-THOS industries. This study investigates the effects of the GCGs on green innovation from the perspective of peer effect. It explores mutual influences among THOS and non-THOS enterprises to reveal mechanisms underlying the peer effect. The key results are as follows. First, the peer effect positively influences the quality of enterprises’ green innovation; compared with THOS industries, the GCGs could strengthen the peer effect of green innovation in non-THOS industries. Second, after implementing the GCGs, compared with THOS industry, the peer effect of green innovation in non-THOS industries is stronger. Green innovation in THOS enterprises could promote green innovation in non-THOS enterprises in the same peer group. Third, the stricter the financing constraint and the fiercer the industrial competition faced by enterprises, the weaker the peer effect of green innovation among industries. The higher the degree of marketization, the stronger the peer effect of green innovation for non-THOS enterprises.
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