| The development of green finance is an important global initiative in response to climate change as well as an inherent requirement for the sustainable development of China.To narrow the tremendous green financing gap,the government needs to guide and leverage a wide range of social capital into the green sector through the investment of public funds.Taking the China Sustainable Energy Financing Program,carried out by an international institution in cooperation with Chinese commercial banks,as an example,this paper demonstrates that when there's more information asymmetry and market failure with respect to technologies,benefits and risks in the sustainable energy industry,project financing difficulties can be effectively alleviated through the involvement of third parties such as development agencies or government by providing risk sharing and technical support.Then the result of empirical analysis on the specific loan data of the Program indicates that the environmental benefits(carbon dioxide emission reductions)of the loan projects have a significant and negative correlation with the pricing of banks'loan interest rates,which shows that projects with greater environmental benefits tend to obtain loans at a lower price in general.Finally,this paper suggests that the financing difficulties caused by information asymmetry can be solved by the mode of risk sharing facility and technical support provided by governments,development agencies and other third parties;financial institutions need to enhance their own green awareness and determination and internalize green finance related capacities;enterprises should strive to achieve green transformation which will help to obtain a relatively favorable financing. |
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