Can the Term Structure of Credit Promote the Green Innovation in China?
DOI:
https://doi.org/10.54097/hbem.v9i.9318Keywords:
Term Structure of Credit; Green Innovation and Development; Financial Credit; Energy Saving; Emission Reduction.Abstract
The term structure of credit is significant to the cultivation of green innovation ability and high-quality economic development in each province. Using panel data for thirty Chinese provinces from 2005 to 2019, this paper analyzes how the extending term structure of credit impacts the development of green innovation in each province and its internal mechanism. The results are as follows. Firstly, the extending term structure of credit has promoted green innovation, which is more remarkable in innovative provinces. Secondly, the mechanism analysis shows that the extending term structure of credit improves green innovation activities in provinces to a certain extent, thus reducing environmental pollution by mitigating emissions of carbon dioxide and sulfur dioxide. According to regulating effect analysis, the provincial competition for scientific and technological innovation and environmental protection helps to boost the positive effect of the extending term structure of credit on the development of green innovation. The conclusion of this study provides empirical evidence and policy suggestions for advancing the transmission mechanism of the term structure of credit, which optimizes the relevant governmental policies about green innovation promotion to further develop green innovation in various provinces.
Downloads
References
Zhang, L. L., Xiao, L. M. & Gao, J. F. (2018). Measurement and comparison of green financial development level and efficiency in China: Based on data of 1040 public companies. Forum of Science and Technology in China, (9), 100-112+120.
Cui, X. M., Wang, J. Y. & Xu, G. Y. (2021). Environment uncertainty, executive tenure and enterprise green innovation. Scientific Decision Making, (10), 20-39.
Wang, X. & Wang, Y. (2021). Research on the green innovation promoted by green credit policies. Journal of Management World, 37(6), 173-188+11.
Ma, J., Zhu, B. & He, X. (2020). How can family business become more active promoters of green innovation? From the perspective of socioemental wealth and institutional legitimacy. Journal of Management Sciences in China, (09), 31-60.
He, Y., Yu, W. L., Dai, Y. C. et al. (2019). Career experience of managers and enterprises’ innovation. Journal of Management World, 35(11), 174-192.
Zhang, J. F., Li, H. Y. & He, H. (2017). IPO and firm innovation: An empirical study based on Chinese patent data. Journal of Financial Research, (05), 160-175.
Wang, X. & Chu, X. (2019). External financing and enterprises’ green technology innovation: A study based on the threshold model of firm size. Systems Engineering-Theory & Practice, 39(08), 2027-2037.
Porter, M. (1991). American’s green strategy. Scientific American, 264(4), 168-264.
Liu, J. K. & Xiao, Y. Y. (2022). China’s environmental protection tax and green innovation: Incentive effect or crowding-out effect? Economic Research Journal, 57(1), 72-88.
Sheng, T. X. & Zhang, Y. (2019). Monetary policy, financial leverage, and long-term credit resources--Based on the perspective of Chinese commercial banks. Studies of International Finance, (5), 55-64.
Goetz, M. (2019). Financing conditions and toxic emissions. SAFE Working Paper.
Zhang, J. & Ju, Y. W. (2017). Loan term structure and China’s economic growth. World Economic Papers, (5), 1-22.
Liu, C. J., Chang, S. H. & Li, X. (2022). Has green credit policy boosted green total factor productivity in China’s heavily polluting industries? Studies of International Finance, (4), 3-11.
Xie, Q. X. & Zhang, Y. (2021). Green credit policy, supporting hand, and innovation transformation of enterprises. Science Research Management, 41(1), 125-134.
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
