The impact of green credit policy on energy efficient utilization in China

Green credit policy is an innovative measure in the financial industry and can help enterprises reduce energy consumption, reverse the situation of environmental pollution and resource waste, and promote sustainable development of the economy and society based on guiding fund flows into the green environmental protection industry. This research thus uses panel data of 30 provinces and cities in China from 2000 to 2017 to examine the impact of a green credit policy on the level of energy efficient utilization. We establish the EBM (epsilon-based measure) super-efficiency model to measure the level of energy efficient utilization in China, apply the regression discontinuity design (RDD) model to empirically study the net effect of the green credit policy on the level of energy efficient utilization, and assess the policy's regional heterogeneity. Finds present that the level of energy efficient utilization in China exhibits a fluctuating upward trend, and there are certain spatial heterogeneities across its regions. The overall level of the eastern region's energy efficient utilization is the best, followed by the central and western regions in that order. The results of RDD based on the national perspective indicate that the green credit policy has a significantly positive effect on the level of energy efficient utilization, while subregional regression results reveal that improvement caused by implementation of the green credit policy varies across regions in China. The performance of improving energy efficiency in the eastern region is excellent, but the improvement effect in the central and western regions is so far not desirable.