Green credit policy, property rights and debt financing: Quasi-natural experimental evidence from China

Our paper uses the promulgation of the "Green Credit Guidelines" policy in China as a quasi natural experiment. Based on a difference-in-differences (DID) model, the results show that the debt financing capacity of heavily polluting enterprises has dropped significantly, and the negative net effect of debt financing is more pronounced in state-owned enterprises and enterprises in regions with weak financial ecosystems. The research results show that the green credit policy system plays a guiding role in the allocation of credit resources.