Greener Together or Carbon Leakage? What Regional Effect Can Green Credit Policy Bring
ABSTRACT Motivated by global environmental challenges, China introduced a green credit policy to achieve carbon peaking and carbon neutrality goals. This study examines the regional effects of the green credit policy using a difference‐in‐differences model. The results reveal significant local and r...
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| Format: | Article |
| Language: | English |
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Wiley
2025-05-01
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| Series: | Asia & the Pacific Policy Studies |
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| Online Access: | https://doi.org/10.1002/app5.70019 |
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| author | Zengram Yuanzhen Zheng Chenghao Men |
| author_facet | Zengram Yuanzhen Zheng Chenghao Men |
| author_sort | Zengram Yuanzhen Zheng |
| collection | DOAJ |
| description | ABSTRACT Motivated by global environmental challenges, China introduced a green credit policy to achieve carbon peaking and carbon neutrality goals. This study examines the regional effects of the green credit policy using a difference‐in‐differences model. The results reveal significant local and regional carbon emissions reduction effects, along with negative outcomes for exports. The mediating analysis reveals that green credit policy drives regional decarbonisation by fostering green innovation. The internal firm characteristics (geographic location and ownership) and the external environment (financial technology development and government service capability) significantly moderate the policy’s impact. Additionally, the green credit policy has local and regional employment reduction effects. Green innovations mediate the reduction in employment, whereas a shift in labour from SOEs to low‐pollution nonSOEs occurs. |
| format | Article |
| id | doaj-art-b5eea79d9e774eb5b1ed6d6a649d6de1 |
| institution | OA Journals |
| issn | 2050-2680 |
| language | English |
| publishDate | 2025-05-01 |
| publisher | Wiley |
| record_format | Article |
| series | Asia & the Pacific Policy Studies |
| spelling | doaj-art-b5eea79d9e774eb5b1ed6d6a649d6de12025-08-20T01:56:56ZengWileyAsia & the Pacific Policy Studies2050-26802025-05-01122n/an/a10.1002/app5.70019Greener Together or Carbon Leakage? What Regional Effect Can Green Credit Policy BringZengram Yuanzhen Zheng0Chenghao Men1School of Management Fudan University Shanghai ChinaSchool of Management Shandong University Jinan ChinaABSTRACT Motivated by global environmental challenges, China introduced a green credit policy to achieve carbon peaking and carbon neutrality goals. This study examines the regional effects of the green credit policy using a difference‐in‐differences model. The results reveal significant local and regional carbon emissions reduction effects, along with negative outcomes for exports. The mediating analysis reveals that green credit policy drives regional decarbonisation by fostering green innovation. The internal firm characteristics (geographic location and ownership) and the external environment (financial technology development and government service capability) significantly moderate the policy’s impact. Additionally, the green credit policy has local and regional employment reduction effects. Green innovations mediate the reduction in employment, whereas a shift in labour from SOEs to low‐pollution nonSOEs occurs.https://doi.org/10.1002/app5.70019carbon leakagecarbon reductionChinagreen credit policygreen technology innovation |
| spellingShingle | Zengram Yuanzhen Zheng Chenghao Men Greener Together or Carbon Leakage? What Regional Effect Can Green Credit Policy Bring Asia & the Pacific Policy Studies carbon leakage carbon reduction China green credit policy green technology innovation |
| title | Greener Together or Carbon Leakage? What Regional Effect Can Green Credit Policy Bring |
| title_full | Greener Together or Carbon Leakage? What Regional Effect Can Green Credit Policy Bring |
| title_fullStr | Greener Together or Carbon Leakage? What Regional Effect Can Green Credit Policy Bring |
| title_full_unstemmed | Greener Together or Carbon Leakage? What Regional Effect Can Green Credit Policy Bring |
| title_short | Greener Together or Carbon Leakage? What Regional Effect Can Green Credit Policy Bring |
| title_sort | greener together or carbon leakage what regional effect can green credit policy bring |
| topic | carbon leakage carbon reduction China green credit policy green technology innovation |
| url | https://doi.org/10.1002/app5.70019 |
| work_keys_str_mv | AT zengramyuanzhenzheng greenertogetherorcarbonleakagewhatregionaleffectcangreencreditpolicybring AT chenghaomen greenertogetherorcarbonleakagewhatregionaleffectcangreencreditpolicybring |