Green credit and enterprises' carbon emission intensity: empirical data from Chinese microenterprises

This study empirically examined whether China's green credit policies could significantly reduce enterprises' carbon emission intensity. Constructing a difference-in-differences model, we utilized data from 1742 listed enterprises from 2003 to 2019 and the green credit guidelines issued in 2012 to perform a quasi-natural experiment. We found that (1) green credit can significantly reduce enterprise carbon emission intensity. (2) Green credit can significantly reduce the carbon emission intensity of enterprises at the macro level, through mechanisms such as industrial structure upgrading and energy efficiency improvement, and at the micro level, through mechanisms such as changing corporate business performance and reducing inefficient investment. (3) Enterprises with high social responsibility, low financing constraints, and low financial distress, as well as regions with high environmental regulatory intensity and high financial development, are prone to the inhibitory effect of green credit on corporate carbon emissions. Thus, implementing green credit policies in these areas would be effective. Based on these findings, specific recommendations are provided to promote a reduction in corporate carbon emissions.