Can the green finance policy force the green transformation of high-polluting enterprises? A quasi-natural experiment based on “Green Credit Guidelines”

Green finance policy (GFP) driving the green transformation of high-polluting enterprises (HPEs) has become a powerful measure for various countries to rectify environmental problems. Using the data of Chinese A-share listed companies from 2007 to 2019, this paper adopts the difference-in-differences (DID) method to empirically test the incentive effect and mechanism of the Green Credit Guidelines (GCGs) on green innovation. The research shows that the GFP accelerates green innovation in HPEs. The mechanism analysis exhibits that the incentive effect of GFP on green innovation of HPEs is mainly achieved by increasing the financing constraints and the debt financing cost of HPEs. The heterogeneity test found that the promoted effect of GFP on green innovation of HPEs is more obvious in company with financial background, the central and western regions, capital city and regions with low levels of green development. Therefore, the government should strive to create a good green financial environment and formulate more appropriate differentiated credit policies; HPEs should actively learn technology and experience from enterprises with successful green transformation. Only with the collective efforts of the government and enterprises can China better achieve the “dual carbon” goal.