Green Credits Research Articles

Green Technology Innovation Guiding Policies under the Synergy of Government and Financial Institutions

Guiding enterprises towards green technology innovation (GTI) is a pivotal strategy for mitigating pollution and energy wastage, thereby facilitating the transition towards a green and low-carbon economy. In order to solve the single irrationality of the existing guidance policy and improve its implementation effect, parameters of environmental regulation and green credit policy are hereby introduced to construct a tripartite evolutionary game model of the government, financial institutions, and enterprises. The evolutionary stability of the government and financial institutions in guiding enterprises' GTI is analyzed. Simulation analysis method is used to visualize the evolution path of the game system under different policy options. The study results show that increasing interest rate subsidies can promote the financial institutions and the government to formulate GTI guidance policies. Besides, there is a significant synergistic effect between interest rate subsidies and green credits, which can efficiently foster GTI within enterprises and decrease their innovation costs. Building on this foundation, further increasing the carbon tax rate can lead to a reduction in government subsidy expenditures, improve the evolution rate of the ideal strategy, and expedite the realization of a green, low-carbon transformation.

Green Credits: A Bibliometric Analysis of Publications in the Web of Science

Sustainable development goals emphasize disseminating projects that do not pollute the environment. Green credit is one of the primary tools used to support and finance environmentally friendly projects. Thus, green credits appear to be a current research area. This research aims to conduct a bibliometric analysis of studies on green credits. To achieve this goal, we reviewed 2,630 studies published in the Web of Science database between 1980 and 2024. We presented the changes in the number of studies and citations over time, along with details about the most cited studies. In the literature review section, in particular, studies published recently were examined. Then, we categorize the studies based on document and index type, written language, countries, subjects, and citation categories. Our main results are: The most intense years for studies on green credits are 2022 and 2023. 98% of the studies were published in English, with over 80% being article-based. China leads the list of countries to conducting the most studies. The first three categories with the most studies are environmental sciences, green sustainable science technology, and economics. As the number of studies increased over time, citations also increased.

Sustainable finance analysis of commercial banks in China

The literature generally finds a mixed relationship between corporates' social activities and performance in emerging economies. One possible explanation is that such social activities lack sufficient recognition from financial institutions, leading to inefficient allocation of resources in terms of sustainable development. Therefore, the practice of sustainable finance by commercial banks in emerging economies is crucial to future sustainable development. Our empirical results show that providing loans to corporates engaged in sustainability activities positively contributes to performance in China's banking industry, whereas loans to small- and micro-size firms have an insignificant impact. Hence, the government should actively encourage commercial banks to continuously expand green credits that will not only upgrade sustainable finance, but also enhance future sustainable development.

Sustainable Finance and Economical Profitability in Africa

African continent is facing a considerable demonstration of financial institutions and especially bank group which are dominating the banking environment. In the absence of developed financial markets, these bank organisations are at the centre of the economic activity. They are even the main financing source for companies, States, households and represent about 80% of African continent assets. This situation is encouraged by the organisational structure of those banks (subsidiary companies, representative offices, affiliated banks and branches) which permit a better representatively at the level of the continent. This research analyses the influence of sustainable finance principles on the economical profitability of 42 banking groups implanted in African continent between 2010 and 2020. Thus, data used are extracted from annual reports and were analysed through a time cross-sectional regression corrected for any latent heteroscedasticity and serial autocorrelation. At the end, the findings of this research are plural. firstly, green credits and transparency have a non-considerable impact on economical profitability. secondly, employee shareholding and gender diversity have a negative influence on economical profitability. thirdly, corporate environmental responsibility is negatively and highly correlated to bank economic profitability. Finally, philanthropy positively and highly affects economical profitability. One can therefore conclude that the profitability of sustainable finance is mitigated in Africa.

Green-selecting: Foreign institutional ownership and corporate green practices

To address the widespread skepticism of firms’ environmental commitments, we show that foreign institutional ownership can positively predict the holding firm's real green practices. Exploiting the Stock Connect Programs in China which introduces the minority ownership of foreign institutions, we show that the selected firms significantly increase holdings of green patents, R&D expenses, access to green credits, and decrease carbon emissions. The effect is more pronounced if the foreign institutional investors are from countries with higher ESG standards. Analysis based on propensity-score-matched sample suggests that foreign institutional ownership sends a signal certifying the firm's green orientation, enabling it to access more capital and improve green performance. Overall, our study proposes foreign institutional holdings as a practical indicator of selecting genuinely green stocks.

The nexus between green finance and energy consumption in regional comprehensive economic partnership countries.

Green finance has been valued and promoted by Regional Comprehensive Economic Partnership (RCEP) countries for its attribute of supporting green and sustainable development. However, the fossil fuel-centric growth pattern poses a threat to the sustainable development of RCEP countries. The existing literature remains inadequate regarding the relationship between green finance and fossil energy consumption. An in-depth understanding and empirical examination of the nexus between green finance development and fossil energy consumption in RCEP countries is key to successful policymaking and sustainable development. This study proposes a theoretical framework for analyzing the nexus between green finance and fossil energy consumption. Then, a green finance development index is constructed by using the entropy weight method based on green credits, green securities, and green investments. By utilizing method of moment quantile regression (MMQR), panel data of 10 RCEP countries from 2008 to 2020 are investigated. The results demonstrate a strong nonlinear pattern of green finance's impact on reducing fossil energy consumption. Conventional finance and fossil energy consumption from the preceding period significantly promote fossil energy consumption, while green technology serves as a mitigating factor for fossil energy consumption. However, the impacts of education and environmental expenditure on fossil energy consumption are limited and inconsistent. Hence, the relevant practitioners, including governments and policymakers, are encouraged to collaboratively promote the green finance policies, and devise tailor-made strategies based on countries' features. Additionally, this study recommends that the RCEP countries incorporate research and development of green technologies, as well as environmental and educational expenditures, into the policymaking process.

Impact of Green Credits from Commercial Banks on Audit Fees

Impact of Green Credits from Commercial Banks on Audit Fees

Hybrid renewable energy source optimization using black widow optimization techniques with uncertainty constraints

To encourage the growth and use of renewable energy such as PV Solar Energy, Wind Energy, India is speeding up the creation of a renewable portfolio standard. Scheduling practises for thermal power and other renewable energy producers in the electric power system will shift as a result of the adoption of the standard and accompanying marketable green credits. In this study, we develop a dynamic economic emission dispatch model for wind, solar, and hydro power under tradable green certificates, taking into account many objectives simultaneously. The drive to transition towards cleaner and more sustainable energy sources has underscored the significance of optimizing hybrid renewable energy systems. This study presents a novel approach that leverages the Black Widow Optimization (BWO) algorithm to address the challenges of optimizing such systems while accounting for uncertainty constraints. The core problem revolves around the effective integration and management of multiple renewable energy sources, including solar, wind, and hydro, within a framework that ensures robustness and adaptability. In the face of variable weather conditions and equipment reliability uncertainties, the BWO algorithm excels in balancing exploration and exploitation to yield optimal solutions. Through rigorous modelling and sensitivity analysis, this study provides quantitative insights into the system's performance, offering a clear understanding of the trade-offs between cost-effectiveness and reliability. Real-world case studies validate the practicality of the proposed approach, underlining its importance in achieving sustainable and resilient energy systems. This study's goal is to minimise the yearly cost of operating a hybrid wind-solar renewable energy system to meet a specified load. The objective was to minimise the yearly cost of the system by selecting the optimal level of system components to meet the required load in an efficient and cost-effective manner. Several computational strategies inspired by nature, such as Black Widow Optimization (BWO), were used to maximise fitness. The fitness function and the techniques used to create it where both coded in MATLAB.

Green credit, financial regulation and corporate green innovation: Evidence from China

The relationship between green credits, financial regulation, and corporate green innovation is gaining attention in academia and industry. While literature acknowledges green credits' role in promoting green innovation, few studies explore their interplay within firms. This study uses annual data from A-share listed companies from 2011 to 2020, showing that green credits catalyze firm-level green innovation. Financial regulation also enhances green credits' positive effects on innovation. Notably, green credits' influence is more pronounced in large-scale enterprises.

Does financial inclusion spur CO2 emissions? The marginal effects of financial sustainability

PurposeThis study aims to examine the relationship between financial inclusion, CO2 emissions and financial sustainability across 17 African countries.Design/methodology/approachData were sourced from the World Development Indicators for the period 2004-2021. The study performs the principal component analysis, panel fixed effects model and quantile regression estimations to investigate the relationship between financial inclusion, CO2 emissions and financial sustainability.FindingsThe study finds that an increase in automated teller machine (ATM) penetration rate, savings and credits increases CO2 emissions. Findings also reveal that financial sustainability reduces financial inclusion, with significant negative effects on the conditional mean of CO2 emissions and the conditional distribution of CO2 emissions across quantiles.Originality/valueThis study is beneficial for policymakers, particularly in the age of digitalization and drive for low-carbon emissions, to develop green credits for energy players and investors to take up renewable and green energy projects characterized by high levels of carbon storage and carbon capture. Further, the banking sector’s credits and liquid assets should be used to finance alternative banking energy-related equipment and services, such as solar photovoltaic wireless ATMs, and fewer bank branches.

The Study of Carbon Neutralization Effects with Green Credit: Evidence from a Panel Data Analysis for Interprovinces in China

Giving full play to carbon emission reduction of green credits is essential to achieve carbon neutrality. According to low-carbon pilot policies and the condition of industrial transfer, this paper first sorts those provinces into different research zones. The zones are as follows: (Ⅰ) the first and second batch of low-carbon municipalities and the first batch of pilot provinces (L1) and other provinces (L2) and (Ⅱ) strong industry transfer-out zone (STR), weak industry transfer-out zone (WTR), and industrial transfer-in area (TIR). Then, we employ a dynamic panel data model and systematic GMM (SYS-GMM) approach to empirically test the impact of green credit and nongreen credit on carbon emissions. Further, this paper analyzes how to coordinate two types of credits to achieve carbon neutrality. The results show that, first, at the national level, the nexus of green credit and carbon emissions with an inverted U-shaped curve and the current impact of green credit is still in the first half of the inverted U-shaped stage. The achievement of carbon neutrality is associated with the ratio structure of green credit to nongreen credit and the scale of green credit. Second, the achievement of carbon neutrality is with regional heterogeneity. The achievement of carbon neutrality is associated with the scale of green credit in L2 and TIR, but also with the ratio structure of nongreen credit to green credit in L2 and STR. However, the carbon neutralization effects with green credit are insignificant in L1 WTR. Finally, based on those conclusions, this paper puts forwards some suggestions to provide references for the policy formulation of green credits and carbon neutrality.

Green credits, green securities, renewable energy, and environmental quality: a comparative analysis of sustainable development across Chinese provinces

Green credits, green securities, renewable energy, and environmental quality: a comparative analysis of sustainable development across Chinese provinces

Can Green Credit Trigger Net-Zero Entrepreneurship?

Finance and entrepreneurship help progress toward net-zero targets, but the relationship between green credits and net-zero entrepreneurship needs to be clarified. To address this need, we aim to explore whether green credit can trigger net-zero entrepreneurship based on empirical evidence from China. Specifically, this study constructs an index measurement system of net-zero entrepreneurship. It tests the statistical relationship, influence mechanism, and policy intervention effects of green credit on net-zero entrepreneurship by fixed effect model, synthetic control method, and a series of robust methods. The findings indicate that green credit has a positive effect on net-zero entrepreneurship. To avoid endogenous problems, we take the green financial reform pilot as a quasi-natural experiment to confirm the causal effect, and the results are still significant. Finally, further mechanism analysis indicates that green credit can trigger net-zero entrepreneurship by accelerating marketization and optimizing the industrial structure. Our findings provide empirical evidence and policy insights for using financial regulation tools to achieve net-zero targets.

Research on the Impact of Green Credit on Carbon Emission and Mechanism Analysis

Green credit policy is one of the important measures to promote the green transformation of economy and society and achieve the double carbon goal, which has developed rapidly in recent years. The sample was selected from 30 provinces and cities in China (excluding Tibet) from 2008 to 2019 to empirically investigate the effect of green credit on carbon emission intensity, and the study found that (1) green credit reduces carbon emission and plays a role in environmental protection. (2) Green credits act on carbon emissions through three major mediating variables: scale, technology, and structural effects, respectively, and ultimately reduce carbon intensity. This study provides a scientific basis for the formulation of green credit policy in China's energy conservation and emission reduction policy, and proposes policy measures to give full play to green credit to improve the quality and enthusiasm of economic and social growth, and to transform the economic development model to promote green economic development.

The impact of green credits on high-quality energy development: evidence from China.

The implementation of green credits has become an important engine for China's high-quality energy development (HQED). On the basis of constructing an index of HQED and the panel data of thirty provinces in China from 2008 to 2019, this study empirically investigated the effects of green credits on HQED and the action mechanisms behind it in a multi-dimensional manner using a panel fixed-effects model, mediating-effects model, and spatial Durbin model. The results indicated that green credits had significantly contributed to China's HQED, and that conclusion still held true after a series of robustness tests were conducted. It was found that industrial structures and human capital were important channels through which green credits influenced China's HQED. Moreover, the spatial spillover effects of green credits on HQED were also confirmed. Finally, in terms of temporal heterogeneity, the positive effects of green credits on HQED were found to have increased significantly after 2012. Also, in terms of regional heterogeneity, this study observed that the positive influence of green credits on HQED was more significantly in central and western China than in eastern China, and in southern China than in northern China. The results obtained in this research investigation will potentially provide some important insights for energy planners and policymakers to further the understanding of the drivers of HQED, and the corresponding transmission mechanisms and regional differences.

Analysis of Green Credit and the Ecological Welfare Performance Based on Empirical Models and ARIMA(2,3,2): Taking China as an Example

We study the relationship between green credit and ecological welfare performance, green credit’s mechanism, and future trends of ecological welfare performance in China. We aim to determine whether the green credit policy has a positive or negative effect on ecological welfare performance and to give suggestions about green credit for emerging markets, with China as an example. These problems are evaluated with two empirical models by using quadratic and interaction terms, as well as a time series model, ARIMA(2,3,2). The results show that the relationship between green credit and ecological welfare performance is an inverted U shape, and ecological welfare performance peaks when loans approach 2934.2 billion yuan, which equals 441.7446 billion dollars, corresponding to loans between 2015 and 2016. In addition, national income and ecological footprint have a suppressive effect on the impact of green credit on ecological welfare performance, and lifespan can positively affect the mechanism. Moreover, the result of ARIMA(2,3,2) corresponds to previous results and indicates that the ecological welfare performance will fluctuate within a range if green credits continue to be issued.

Influencing Factors of Green Credit Efficiency in Chinese Commercial Banks

This paper is applied the Tobit panel model to analyze the driving factors of green credit efficiency by using Chinese commercial banks’ data from 2009 to 2019. Based on the undesirable-SBM-DEA model, this paper is attempted to construct the green credit evaluation index by incorporating carbon emissions, and evaluating the green credit efficiency of Chinese commercial banks. The result shows that the green credit efficiency of Chinese commercial banks is low currently. Moreover, there is a mutually significant relationship between the efficiency and profitability of commercial banks’ green credit funds. Our findings suggest that the commercial banks should pursue the scale of green credit capital and improve the efficiency of green credits to help China achieve carbon neutrality goals.

Green Credit Policy and Investment Decisions: Evidence from China

Previous studies have reported mixed results on the effect of the green credit policy on firms’ behaviors. Investment decision making is one of the most important elements of firms’ behaviors, but few studies have discussed the relationship between the green credit policy and firms’ investment decisions. Therefore, this paper explores the effect of green credit policy on firms’ investment decisions. Using Chinese listed firms from 2008 to 2020, we found that the green credit policy tended to reduce pollutant-emitting firms’ investment level but increases pollutant-emitting firms’ investment efficiency; this effect was more pronounced in state-owned firms, firms with high-quality corporate governance, and those with a higher analyst following. This paper contributes to the literature on the economic consequences of the green credit policy and can help commercial banks and other financial institutions allocate green credits more effectively.

Under the same roof? The Green Belt and Road Initiative and firms’ heterogeneous responses

ABSTRACT Launched in 2017 the Green Belt and Road policy acts as an important upgrade to China’s recent core foreign strategy (i.e., the Belt and Road Initiative) and aims to balance the economic development and environmental harmony in countries along the routes. In this paper, we take the implementation of this green policy as a quasi-natural experiment and employ a difference-in-difference method to identify the impact of the policy on Chinese outward direct investment (ODI) firms. We find that the policy has a significant and robust effect on improving the overall performance of ODI firms. Under the same policy roof, however, the seemingly similar impact masks the distinct responses of state-owned and non-state-owned enterprises. Non-state-owned enterprises improve their performance by pursuing green credits and technology upgrades. State-owned enterprises achieve improved performance through better compliance with the green policy and the accompanying government subsidies, in addition to technology upgrades.

On green credits and carbon productivity in China.

Based on panel data from 30 provinces over the period of 2003-2016, this study uses the spatial econometric model to examine the effect of green credits on carbon productivity. The research findings show that there is a significant positive correlation between green credits and carbon productivity among provinces during this period. Provinces with high levels of carbon productivity (green credits) are also geographically adjacent or economically close to provinces with high levels and vice versa. Regression results of the whole sample show that green credits not only promote carbon productivity, but also have a positive spatial spillover effect. Similar regression results using regional sub-samples indicate that the direct promotion effect and spatial spillover effect of green credits on carbon productivity are more obvious in the central and western regions than in the eastern parts of the country. The research findings have important and relevant policy implications as far as the relationship between green credits and carbon productivity is concerned.