Empirical Research On The Implementation Effect And Long-Term Effect Of Green Credit Policy

The rapid economic development has affected the natural environment,which is unfavorable to the long-term economic development,and goes against the sustainability of natural ecology.Changing the development mode is in a great need nowadays.Against this background,China has begun to promote green finance,promote environmental protection through finance.One of the most prominent is green credit.As a pollution prevention and control measure,green credit mainly uses credit to restrict polluting enterprises’ financing,thereby affecting the transformation of production methods,and achieving the main purpose of pollution control.China’s green credit has been in operation for several years,some scholars have proposed that it has problems such as imperfect policies and regulations,imperfect systems,and insufficient environmental information disclosure.The effect of the green credit policy has attracted widespread attention.At the same time,since pollution control is a long-term process,China’s launch of green credit is expected to be a long-term means to promote pollution control and alleviate environmental problems,rather than a temporary control policy.The long-term effect of the policy is also particularly critical.Therefore,it is meaningful to discuss whether the green credit policy is effective,whether the policy effect is stable or changed in the long run.The main purpose of green credit is to promote pollution control and alleviate environmental problems.It mainly restricts financing of polluting companies through loan restrictions and raising interest rates,affecting their pollution production activities,and achieving pollution source control.Therefore,from the view of corporate debt financing,this article discusses the influence of the policy on debt financing scale and cost of polluting enterprises and the changes of the influence in different periods,and analyzes the overall and long-term effects of the policy.The article selects the policy which named "Notice of CBRC on Issuing Green Credit Guidelines" issued in 2012 as the policy time point,and uses the 2004-2019 period as the research period to conduct empirical testing using the double difference method.First,this article discusses the overall effect of the policy on debt financing scale and cost of polluting companies.Second,it further analyzes the changes in the policies’effect in different periods after the policy,and discusses the policy long-term effect.Third,it tests the effect of the policy on state-owned enterprises and non-state-owned enterprises is same or not,to discuss the balance of the effect.Finally,the robustness test was carried out through parallel trend hypothesis test,PSM-DID and placebo test.The research in this paper shows that,from the view of the overall effect of the policy,the policy has decreased the scale of debt financing of pollution industry companies,and has increased their cost of corporate debt financing.That is,the policy can limit debt financing of enterprises in the polluting industry efficaciously.From the long-term effect,in different periods after the policy,the policy has always limited the scale of debt financing of polluting industry companies efficaciously.Although it can increase polluting enterprises’ debt financing cost,the time is short.That is,the long-term effect from the view of the scale is relatively stable,but from the cost view is short-lived.Moreover,based on a comparative study of the policy effects of state-owned and non-state-owned enterprises,it is found that in terms of corporate debt financing scale,the policy has an obviously negative effect on this two types companies in polluting industries.In terms of corporate debt financing cost,the policy can raise state-owned enterprises’ debt financing cost in polluting industries,but the effect on non-state-owned enterprises in polluting industries is not significant.That is,the effects of the policy are different.Through the above research and conclusions,in theory,this paper enriches the research on the effect of the policy,and provides a reference for the research on the long-term effect of the policy.In practice,it has provided enlightenment for continuing to implement the green credit policy,giving play to the long-term role of the policy,and realizing the sustainable pollution control.It also provides some suggestions for the entities involved in green credit,which is in favour of the development of green credit and the alleviation of environmental issues.