Research On The Impact of Green Credit Policy On Debt Financing Costs of Green Enterprises

Abstract

This study examines the impact of China’s green credit policies on the debt financing costs of green enterprises. Using a difference-in-differences (DID) approach, the research empirically analyzes the relationship between financing costs and the implementation of green credit policies. The results indicate that these policies significantly reduce loan financing costs for green firms. Moreover, the findings show no substantial differences in financing costs across firms of varying sizes, highlighting the inclusive and equitable effects of the policy. Multiple robustness tests confirm the reliability of the results. Overall, the study suggests that green credit policies effectively alleviate financial constraints faced by green enterprises and enhance their access to affordable credit. It further emphasizes the need to refine the green credit framework to ensure equitable financial opportunities for firms of all sizes.