The impacts of green credit policy on green innovation of high-polluting enterprises in China

Wei Li; Huihui Cheng; Junhe He; Yufei Song; Hui Bu

doi:10.1016/j.frl.2024.105167

The impacts of green credit policy on green innovation of high-polluting enterprises in China

Wei Li
, Huihui Cheng
, Junhe He
, Yufei Song
, Hui Bu^*

^*Corresponding author for this work

School of Economics and Management

Beihang University
Rutgers - The State University of New Jersey, New Brunswick
Shanghai Pudong Development Bank Beijing Branch

Research output: Contribution to journal › Article › peer-review

28 Scopus citations

Abstract

This paper assesses the effects of the Green Credit Guidelines (GCG) 2012 on the green innovation of high-polluting enterprises (HPEs) in China. We find a significant increase in utility patents following the GCG 2012, indicating a surge in incremental green innovation. However, the policy's impact on invention patents remains marginal, pointing to a dominant trend of compliance-oriented innovation rather than fundamental technological breakthroughs. We find there is long-term effect of GCG 2012 which may be attributable to the enhanced rigor of policy implementation. Additionally, we document that HPEs reduced financial asset investments in anticipation of more stringent credit conditions.

Original language	English
Article number	105167
Journal	Finance Research Letters
Volume	62
DOIs	https://doi.org/10.1016/j.frl.2024.105167
State	Published - Apr 2024

Keywords

Financial assets allocation
Green credit policy
Green innovation
Patents granted

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10.1016/j.frl.2024.105167

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title = "The impacts of green credit policy on green innovation of high-polluting enterprises in China",

abstract = "This paper assesses the effects of the Green Credit Guidelines (GCG) 2012 on the green innovation of high-polluting enterprises (HPEs) in China. We find a significant increase in utility patents following the GCG 2012, indicating a surge in incremental green innovation. However, the policy's impact on invention patents remains marginal, pointing to a dominant trend of compliance-oriented innovation rather than fundamental technological breakthroughs. We find there is long-term effect of GCG 2012 which may be attributable to the enhanced rigor of policy implementation. Additionally, we document that HPEs reduced financial asset investments in anticipation of more stringent credit conditions.",

keywords = "Financial assets allocation, Green credit policy, Green innovation, Patents granted",

author = "Wei Li and Huihui Cheng and Junhe He and Yufei Song and Hui Bu",

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year = "2024",

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doi = "10.1016/j.frl.2024.105167",

language = "英语",

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AU - Li, Wei

AU - Cheng, Huihui

AU - He, Junhe

AU - Song, Yufei

AU - Bu, Hui

PY - 2024/4

Y1 - 2024/4

N2 - This paper assesses the effects of the Green Credit Guidelines (GCG) 2012 on the green innovation of high-polluting enterprises (HPEs) in China. We find a significant increase in utility patents following the GCG 2012, indicating a surge in incremental green innovation. However, the policy's impact on invention patents remains marginal, pointing to a dominant trend of compliance-oriented innovation rather than fundamental technological breakthroughs. We find there is long-term effect of GCG 2012 which may be attributable to the enhanced rigor of policy implementation. Additionally, we document that HPEs reduced financial asset investments in anticipation of more stringent credit conditions.

AB - This paper assesses the effects of the Green Credit Guidelines (GCG) 2012 on the green innovation of high-polluting enterprises (HPEs) in China. We find a significant increase in utility patents following the GCG 2012, indicating a surge in incremental green innovation. However, the policy's impact on invention patents remains marginal, pointing to a dominant trend of compliance-oriented innovation rather than fundamental technological breakthroughs. We find there is long-term effect of GCG 2012 which may be attributable to the enhanced rigor of policy implementation. Additionally, we document that HPEs reduced financial asset investments in anticipation of more stringent credit conditions.

KW - Financial assets allocation

KW - Green credit policy

KW - Green innovation

KW - Patents granted

UR - https://www.scopus.com/pages/publications/85186693281

U2 - 10.1016/j.frl.2024.105167

DO - 10.1016/j.frl.2024.105167

M3 - 文章

AN - SCOPUS:85186693281

SN - 1544-6123

VL - 62

JO - Finance Research Letters

JF - Finance Research Letters

M1 - 105167

ER -

The impacts of green credit policy on green innovation of high-polluting enterprises in China

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Keywords

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