Green credit policy and corporate green innovation

This study investigates how Green Credit Policy (GCP) influences corporate green innovation (GI) through a comprehensive empirical analysis of Chinese listed firms from 2009 to 2022. Employing a difference-in-differences approach with 29,122 firm-year observations, we document that the implementation of Green Credit Guidelines in 2012 significantly enhances firms’ environmental innovation output, with the causal relationship validated through parallel trends analysis, placebo tests, and propensity score matching. Our investigation reveals two key financial mechanisms: GCP promotes green innovation by alleviating financing constraints and reducing financing costs, creating a supportive environment for…