Greener Together or Carbon Leakage? What Regional Effect Can Green Credit Policy Bring

Bibliographic Data

ID6415694
AuthorsZ Zheng (0000-0001-9474-7874, Fudan University), Chenghao Men (0000-0002-7125-8215, Shandong Management University)
Year2025
Volume12
Issue2
Publication date2025-03-21
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueAsia & the Pacific Policy Studies (JOURNAL)
Journal identifiersISSN: 2050-2680 • E-ISSN: 2050-2680
PublisherWiley (PUBLISHER • GB)
DOI10.1002/app5.70019
OpenAlexW4408724097
LanguageEN
References cited48

Motivated by global environmental challenges, China introduced a green credit policy to achieve carbon peaking and carbon neutrality goals. This study examines the regional effects of the green credit policy using a difference‐in‐differences model. The results reveal significant local and regional carbon emissions reduction effects, along with negative outcomes for exports. The mediating analysis reveals that green credit policy drives regional decarbonisation by fostering green innovation. The internal firm characteristics (geographic location and ownership) and the external environment (financial technology development and government service capability) significantly moderate the policy’s impact. Additionally, the green credit policy has local and regional employment reduction effects. Green innovations mediate the reduction in employment, whereas a shift in labour from SOEs to low‐pollution nonSOEs occurs

Biology · Carbon leakage · Climate change · Climate policy · Economics · Leakage (economics · Macroeconomics · Monetary economics · Natural resource economics · Climate Change Policy and Economics · Energy, Environment, Economic Growth · Fiscal Policy and Economic Growth · Ecology

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Open DOIOpen Access