The Impact Mechanism of Green Credit Policy on the Sustainability Performance of Heavily Polluting Enterprises—Based on the Perspectives of Technological Innovation Level and Credit Resource Allocation

Xiaowei Ding, Ruxu Jing, Kaikun Wu, Maria Vladimirovna Petrovskaya, Zhikun Li, Alina Steblyanskaya, Lyu Ye, Xiaotong Wang, Vasiliy M. Makarov

Research output: Contribution to journalArticlepeer-review


Green credit policy (GCP), as one of the key financial instruments to achieve ’carbon peaking’ and ‘carbon neutrality’ targets, provides capital support for the green development of enterprises. This paper explores the impact mechanism of GCP on the sustainability performance of heavily polluting enterprises (HPEs) from the perspectives of technological innovation level (TIL) and credit resource allocation (CRA), using panel data for Chinese A-share listed manufacturing companies from 2010 to 2015 to construct a propensity score matching and differences-in-differences (PSM-DID) model. We find that GCP has a causal effect on corporate sustainability performance (CSP). Although GCP significantly improves CSP, there is no long-term effect. Heterogeneity analysis shows that the relationship between GCP and CSP is only significant in non-state-owned enterprises and in eastern and low-market-concentration enterprises. Mechanism tests indicate that GCP stimulates HPEs to invest more in technological innovation and thereby improves CSP through the innovation compensation effect; the credit constraint and information transfer effects caused by GCP reduce the credit resources available to HPEs but have a significant forced effect on CSP. This paper enriches the study of the economic consequences of GCP and provides implications for stakeholders to improve the green financial system and achieve green transformation of HPEs.

Original languageEnglish
Article number14518
JournalInternational Journal of Environmental Research and Public Health
Issue number21
Publication statusPublished - Nov 2022
Externally publishedYes


  • corporate sustainability performance
  • credit resource allocation
  • green credit policy
  • heavily polluting enterprises
  • technological innovation level

Cite this