The impact of China’s green credit policy on the innovation of manufacturing enterprises

This study empirically investigated the effects of green credit policies on corporate innovation in China, utilizing panel data for A-share listed manufacturing companies from 2008 to 2022. The analysis employed double-difference models, with the 2012 introduction of the Green Credit Guidelines trea...

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Main Authors: Guanglin Sun, Qinyao Feng, Shanshan Wu, Chuanxin Xia
Format: Article
Language:English
Published: Elsevier 2025-05-01
Series:Journal of Innovation & Knowledge
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Online Access:http://www.sciencedirect.com/science/article/pii/S2444569X25000642
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author Guanglin Sun
Qinyao Feng
Shanshan Wu
Chuanxin Xia
author_facet Guanglin Sun
Qinyao Feng
Shanshan Wu
Chuanxin Xia
author_sort Guanglin Sun
collection DOAJ
description This study empirically investigated the effects of green credit policies on corporate innovation in China, utilizing panel data for A-share listed manufacturing companies from 2008 to 2022. The analysis employed double-difference models, with the 2012 introduction of the Green Credit Guidelines treated as an exogenous shock. Green credit schemes were found to restrict innovation among more heavily-polluting enterprises. In terms of mechanisms, financial constraint effects outweighed the Porter effect, with heightened financial limitations imposed by green credit schemes driving the observed decrease in corporate innovation. Additionally, the degree of local financial development was found to strongly mediate how green credit policies impacted innovation-related investments, while government subsidies and internal investment levels exacerbated the negative effects of green credit schemes on innovation. Green credit-related declines in innovation within heavily polluting industries were exaggerated for privately owned versus state-owned enterprises. Similarly, technology-intensive enterprises, those operating in highly competitive markets, and those less-dependent on human labor also experienced greater reductions in innovation. Finally, green credit-related declines in innovation were most severe for enterprises located in the Central Region of China.
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spelling doaj-art-d9d76f30b0554425a1e02a19d111d0732025-08-20T02:55:33ZengElsevierJournal of Innovation & Knowledge2444-569X2025-05-0110310071410.1016/j.jik.2025.100714The impact of China’s green credit policy on the innovation of manufacturing enterprisesGuanglin Sun0Qinyao Feng1Shanshan Wu2Chuanxin Xia3School of Finance, Nanjing University of Finance and Economics, Nanjing 210023, China; Collaborative Innovation Center for Emissions Trading System Co-Constructed by the Province and Ministry, Wuhan 430205, ChinaSchool of Finance, Nanjing University of Finance and Economics, Nanjing 210023, ChinaDepartment of Poltical Economy, Duke Kunshan University, Kunshan 215300, ChinaChinese Academy of International Trade and Economic Cooperation, Beijing 100710, China; Corresponding author.This study empirically investigated the effects of green credit policies on corporate innovation in China, utilizing panel data for A-share listed manufacturing companies from 2008 to 2022. The analysis employed double-difference models, with the 2012 introduction of the Green Credit Guidelines treated as an exogenous shock. Green credit schemes were found to restrict innovation among more heavily-polluting enterprises. In terms of mechanisms, financial constraint effects outweighed the Porter effect, with heightened financial limitations imposed by green credit schemes driving the observed decrease in corporate innovation. Additionally, the degree of local financial development was found to strongly mediate how green credit policies impacted innovation-related investments, while government subsidies and internal investment levels exacerbated the negative effects of green credit schemes on innovation. Green credit-related declines in innovation within heavily polluting industries were exaggerated for privately owned versus state-owned enterprises. Similarly, technology-intensive enterprises, those operating in highly competitive markets, and those less-dependent on human labor also experienced greater reductions in innovation. Finally, green credit-related declines in innovation were most severe for enterprises located in the Central Region of China.http://www.sciencedirect.com/science/article/pii/S2444569X25000642C01C50
spellingShingle Guanglin Sun
Qinyao Feng
Shanshan Wu
Chuanxin Xia
The impact of China’s green credit policy on the innovation of manufacturing enterprises
Journal of Innovation & Knowledge
C01
C50
title The impact of China’s green credit policy on the innovation of manufacturing enterprises
title_full The impact of China’s green credit policy on the innovation of manufacturing enterprises
title_fullStr The impact of China’s green credit policy on the innovation of manufacturing enterprises
title_full_unstemmed The impact of China’s green credit policy on the innovation of manufacturing enterprises
title_short The impact of China’s green credit policy on the innovation of manufacturing enterprises
title_sort impact of china s green credit policy on the innovation of manufacturing enterprises
topic C01
C50
url http://www.sciencedirect.com/science/article/pii/S2444569X25000642
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