Research on the Impact of Green Credit on Carbon Emissions

In the context of the carbon peaking and carbon neutrality policy, promoting the green and low-carbon transformation of the economic system is a major strategic arrangement for high-quality development, and green credit, as an important measure to promote sustainable economic development, has received widespread attention from all walks of life for its impact on carbon emissions. This paper examines the impact of green credit policies on carbon emissions using provincial panel data in China from 2011 to 2020. The empirical results show that green credit has a significant dampening effect on carbon emissions. This carbon reduction effect can be achieved through technological innovation in related industries and the alleviation of financial capital mismatch. The results of the heterogeneity test show that, under the regional differences, the green credit in the eastern and western regions is more effective in curbing carbon emissions than those in the central region; under the differences in energy consumption structure, the green credit in the low-coal-consuming regions is more effective in curbing carbon emissions than those in the high-coal-consuming regions. In addition, the results of the robustness tests conducted after replacing the indicators of the explanatory variables and core explanatory variables remain robust. On this basis, this paper provides some references on how to improve the carbon reduction effect of green credit.