The Quatitative Analysis Of The Effciency Of The Green Credit In Improving The Environmental Quality In China

The Quantitative Analysis of the Efficiency of the Green Credit in Improving the Environmental Quality in ChinaIn 2003, the British government published its Energy White Paper,"Our Energy Future: Creating a Low Carbon Economy". It's the first time that"low-carbon economy"has attracted people's eyes. Since then, low-carbon economy has leapt to the stage of the economic development. As major components involved in low-carbon economy, the famous commercial banks around the world have announced to adopted"the Equator Principles, EPs"one after another, which place great emphasis on the green credit to promote the coordination and sustainable development of economy and environment.In the context of low-carbon economy, we look into the reality of the development in China, which manifest that it is still in a traditional way of high pollution and high emissions. With the purpose of long-term sustainable development, it is essential that some measures should be taken, such as more attentions and increasing investment. This paper taking the trend of low-carbon economy into consideration, attempts to describe the path in which the environmental investment impact the environmental quality. Then with the former analysis as a basis, the paper goes further measuring the efficiency of green credit in improving the environmental quality.Chapter one is Introduction, including the background and the implication of the paper as well as the research method, the innovation and framework.Chapter two reviews the majority of the relevant literatures. It is divided in two parts. The former is mainly about the relationship between economic development and environmental quality; the latter is about the green credit, consisting of feasibility, necessity and the advice on the implementation.Chapter3 depicts the path in which the environmental investment impacts the environmental quality with vector error correction model(VEC) and the impulse response function(IRF). The result shows that there is a long-term equilibrium relationship between them. If the environmental investment is subjected to a positive impact, there will be a great improvement in environmental quality. However, the effect is lack of continuity, returning to be stable after 8 periods. Besides, there is a subtle increasing in the environmental investment during the first two periods after the malignant event, which manifests obviously that the investment lags to some extent. In view of the result, it is essential for the government to place more emphasis on the environment, in the meantime, the relevant subjects should build up a comprehensive, coordinate, and sustainable conception, get rid of the short-sighted mode, enhance the timeliness and persistency of the environmental investment.Chapter4 analyze the efficiency of green credit in improving the environmental quality with principal component analysis. The result shows that the increasing of green credit is able to improve the environmental quality to a certain extent, but the role is of a small range. In view of this, banks should strengthen the concept of green culture, meanwhile, they must establish an integrated, multi-leveled dynamic risk management system and try their best to minimize the risk along with the growth of revenue; the government should place importance on the environment and build up the sustainable strategy; the corporate should give full play to the initiative, pay close attention to the risk existing in the society and environment, disclose the relevant information timely and precisely.The last part is conclusion. This part with the whole paper as a basis, points that the government with the banking and the corporate should insist on the win-win principles. They should compel the further development of green credit so as to drive the improvement of environmental quality.