Green credit policy and enterprise carbon performance: evidence from China

ABSTRACT

Exploring enterprise carbon performance (ECP) via green capital allocation is important for achieving the dual carbon goal. In this article, the impact of the green credit policy (GCP) on ECP is empirically examined using a difference-in-differences model. The results show that GCP significantly improves ECP, and this conclusion remains valid after a series of robustness tests. Low-carbon technology and carbon information disclosure are central transmission mechanisms that are positively adjusted by green consumption, environmental regulation, and marketisation degree. Furthermore, state-owned and declining enterprises are affected more strongly by GCP than non-state-owned, growing, and mature enterprises. The impact of GCP on ECP increases over the enterprise life cycle.

KEYWORDS:

• GCP
• ECP
• DID model
• impact mechanism
• heterogeneity

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

This work was supported by National Natural Science Foundation of China [71903114]; Youth Innovation Technology Project of Higher School in Shandong Province [2022RW049;2023RW009].