The effect of green credit policy on energy efficiency : Evidence from China

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

3 Scopus Citations
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Author(s)

  • Xiujie Tan
  • Ziwei Xiao
  • Yishuang Liu
  • Farhad Taghizadeh-Hesary
  • Banban Wang

Related Research Unit(s)

Detail(s)

Original languageEnglish
Article number121924
Journal / PublicationTechnological Forecasting and Social Change
Volume183
Online published7 Aug 2022
Publication statusPublished - Oct 2022

Abstract

The green credit policy is expected to be an effective financial instrument for achieving energy conservation and emission reduction. This policy would discourage sectors of high pollution, high energy intensity, and overcapacity (known as “two high and one surplus” sectors) from obtaining financial support unless they improve their performance, which could be indicated as energy efficiency. Adopting the panel data of 36 sectors in China, this study employs the difference-in-differences method to estimate the effect of green credit policy on total factor energy efficiency and explore its corresponding influencing mechanisms. The main findings are as follows. First, the implementation of China's Green Credit Guidelines 2012 (GCG2012) could significantly improve total factor energy efficiency by 1.21 % in “two high and one surplus” sectors. Second, the positive effect of GCG2012 is different among sectors, and it is more significant in sectors with an energy-saving target, less percentage of state-owned enterprises, and a higher degree of trade openness. Third, GCG2012 could affect energy efficiency through three mechanisms: research and development investment, energy mix, and financing constraints. It is recommended to strengthen the coordination between the green credit policy and other policies, such as climate-energy and sci-technology policies.

Research Area(s)

  • Energy efficiency, Green credit policy, Green recovery, Sustainable development, The “two high and one surplus” sectors

Citation Format(s)

The effect of green credit policy on energy efficiency : Evidence from China. / Tan, Xiujie; Xiao, Ziwei; Liu, Yishuang et al.

In: Technological Forecasting and Social Change, Vol. 183, 121924, 10.2022.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review