The impact of green credit policies on firm productivity
Song Chen, Mingxiao Dai, Kuangnan Fang, Xiangcheng Huang, Jing Zhang
Keywords:
green credit, productivity, total factor productivity, heavily polluting enterprises, product mix
Abstract:
Green credit policies prompt enterprises to consider their environmental footprint when making financial decisions, thereby encouraging industries to transform and upgrade, and prompting structural adjustments. Using data from China's A-share listed companies from 2007 to 2019, this study examines the impact of the 2012 Green Credit Guidelines on firms’ total factor productivity (TFP). By employing the DID strategy, we find that green credit policies do not significantly affect the TFP of heavily polluting enterprises; notably, this result holds true after a series of robustness tests. Furthermore, we demonstrate that, subject to stricter financing constraints resulting from the policy shock, heavily polluting enterprises adapt their product structures to mitigate the policy’s adverse effects. Finally, the study underscores the role of enterprise ownership in moderating the efficiency of green credit policies on productivity.
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 10.7441/joc.2025.04.10
Chen, S., Dai, M., Fang, K., Huang, X., & Zhang, J. (2025). The impact of green credit policies on firm productivity. Journal of Competitiveness, 17(4), 251-272. https://doi.org/10.7441/joc.2025.04.10
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