Abstract
This paper explores the impact of green credit policy on the green innovation of heavily polluting enterprises by taking the implementation of the “Green Credit Guidelines” in 2012 in China as an exogenous shock. Using the sample of industrial enterprises from the Chinese Industrial Enterprises Database, our empirical results show that, after 2012, the quantity of green innovation represented by the number of green utility model patents and green invention patents is significantly reduced in heavily polluting enterprises. The quality of green innovation represented by the knowledge complexity of green patents increases significantly. The conclusions are valid in a series of robustness tests. The implementation of green credit policy strengthens both the internal financial constraints and the external financial constraints of heavily polluting enterprises. Mediating effect tests reveal that the strengthened internal financial constraints hinder green innovation, while the strengthened external financial constraints promote the knowledge complexity of green patents. There are also firm-level and region-level heterogeneities. The negative effect of green credit policy does not differ between the listed enterprises and non-listed enterprises. It is greater on the green invention patents of the non-state-owned firms. The green innovation of the foreign-owned enterprises declines in all aspects: green utility model patents, green invention patents, and knowledge complexity. Regional intellectual property protection can only significantly mitigate the negative effect on the green utility model patents.
Graphical abstract
Impact of green credit policy on green innovation
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
Data availability
Data will be made available on request.
References
Abadie A, Diamond A, Hainmueller J (2015) Comparative politics and the synthetic control method. Am J Polit Sci 59(2):495–510
An S, Li B, Song D, Chen X (2021) Green credit financing versus trade credit financing in a supply chain with carbon emission limits. Eur J Oper Res 292:125–142. https://doi.org/10.1016/j.ejor.2020.10.025
Bellone F, Musso P, Nesta L, Schiavo S (2010) Financial constraints and firm export behavior. The World Econ 33(3):347–373. https://doi.org/10.1111/j.1467-9701.2010.01259.x
Chen Z, Zhang Y, Wang H, Ouyang X, Xie Y (2022) Can green credit policy promote low-carbon technology innovation? J Clean Prod 359:132061. https://doi.org/10.1016/j.jclepro.2022.132061
Cui X, Wang PP, Sensoy A, Nguyen DK, Pan Y (2022) Green credit policy and corporate productivity: evidence from a quasi-natural experiment in China. Technol Forecast Soc Chang 177:121516. https://doi.org/10.1016/j.techfore.2022.121516
Feng GF, Wang QJ, Chu Y, Wen J, Chang CP (2021) Does the shale gas boom change the natural gas price-production relationship? Evidence from the US market. Energy Econ 93:104327. https://doi.org/10.1016/j.eneco.2019.03.001
Glaeser SA, Landsman WR (2021) Deterrent disclosure. Account Rev 96(5):291–315
Huang HY, Mbanyele W, Wang FR, Song ML, Wang YZ (2022) Climbing the quality ladder of green innovation: does green finance matter? Technol Forecast Soc 184:122007
Irfan M, Razzaq A, Sharif A, Yang XD (2022) Influence mechanism between green finance and green innovation: exploring regional policy intervention effects in China. Technol Forecast Soc 182:121882. https://doi.org/10.1016/j.techfore.2022.121882
Kou Z, Liu X (2017) FIND Report on City and Industrial Innovation in China Fudan Institute of Industrial Development School of Economics. Fudan University ((in Chinese))
Li H, Wang Y, Wu D (2021) Research on patent quality’s impact mechanism on the competitiveness of enterprises for export: the exploration from the perspective of knowledge width. World Econ Studies 1:32–46 ((In Chinese))
Li B, Du JG, Yao TH, Wang QD (2023) FinTech and corporate green innovation: AN external attention perspective. Financ Res Letter 58:104661. https://doi.org/10.1016/j.frl.2023.104661
Ren S, Huang M, Liu D, Yan J (2023) Understanding the impact of mandatory CSR disclosure on green innovation: evidence from Chinese listed firms. Br J Manag 34:576–594. https://doi.org/10.1111/1467-8551.12609
Sun C, Zeng Y (2023) Does the green credit policy affect the carbon emissions of heavily polluting enterprises? Energy Policy 180:113679. https://doi.org/10.1016/j.enpol.2023.113679
Tian C, Li X, Xiao L, Zhu B (2022) Exploring the impact of green credit policy on green transformation of heavy polluting industries. J Clean Prod 335:130257. https://doi.org/10.1016/j.jclepro.2021.130257
Wang X, Wang Y (2021) Research on the Green innovation promoted by green credit policies. J Manag World 37(06):173–188. https://doi.org/10.19744/j.cnki.11-1235/f.2021.0085. (In Chinese)
Wang Y, Zhang W (2024) Green credit policy, market concentration and green innovation: empirical evidence from local governments’ regulatory practive in China. J Clean Prod 434:140228. https://doi.org/10.1016/j.jclepro.2023.140228
Wang HT, Qi SZ, Zhou CB, Zhou JJ, Huang XY (2022) Green credit policy, government behavior, and green innovation quality of enterprises. J Clean Prod 331:129834. https://doi.org/10.1016/j.jclepro.2021.129834
Xue XH, Wang ZC (2021) Impact of finance pressure on energy intensity: evidence from China’s manufacturing sectors. Energy 226:120220. https://doi.org/10.1016/j.energy.2021.120220
Xue XH, Luo J, Wang ZC, Ding H (2023) Impact of green credit policy on the sustainable growth of pollution-intensive industries: evidence from China. Comput Ind Eng 182:109371. https://doi.org/10.1016/j.cie.2023.109371
Yang LY, Zhang ZY (2022) The influence of green credit policy on enterprise green innovation. Sci Res 40(02):345–356. https://doi.org/10.16192/j.cnki.1003-2053.20210817.001
Yao S, Pan Y, Sensoy A et al (2021) Green credit policy and firm performance: what we learn from China. Energy Economics 101:105425
Yu B (2021) How does the green credit Policy affect the technological innovation of heavily polluting enterprises? Econ Manage 43(11):35–51. https://doi.org/10.19616/j.cnki.bmj.2021.11.003. (In Chinese)
Zhang J, Zheng W (2018) Has catch-up strategy of innovation inhibited the quality of China’s patents? Econ Res J 53(5):28–41
Zhang YM, Li XL, Xing C (2022) How does China’s green credit policy affect the green innovation of high polluting enterprises? The perspective of radical and incremental innovations. J Clean Prod 336:130387. https://doi.org/10.1016/j.jclepro.2022.130387
Zhou ZJ, Wang S, Zhang Y (2022) Intellectual property protection and enterprise innovation information Dilemma. China Ind Econ 06:136–154. https://doi.org/10.19581/j.cnki.ciejournal.2022.06.020. (In Chinese)
Funding
This work was supported by Philosophy and Social Science Program of Anhui Province (Grant number: AHSKY2020D37) and Anhui Provincial Department of Education (Grant number: 2023AH050225).
Author information
Authors and Affiliations
Contributions
All authors have participated in the work of this paper and approved and agreed to submit the work to this journal.
Corresponding author
Ethics declarations
Conflict of interest
The authors have no relevant financial or non-financial interests to disclose.
Ethical approval
This work has not been previously published and is not under consideration by another journal. The publication of the work has been approved by all authors.
Additional information
Publisher's Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.
About this article
Cite this article
Wang, Z., Chen, J. & Xue, X. Assessing the efficacy of green credit policy in fostering green innovation in heavily polluting industries. Clean Techn Environ Policy (2024). https://doi.org/10.1007/s10098-024-02871-6
Received:
Accepted:
Published:
DOI: https://doi.org/10.1007/s10098-024-02871-6