The Impact of Credit Support on Low Carbon Economy: An Empirical Study Base on Macro and Micro Economic Level in China

Abstract

Financial support is an important boost power for low carbon economy. From macroeconomic and microeconomic level, this paper analyzes the impact of credit support on low carbon economy. At the macro level, this paper uses VAR model to analyze the relationship between credit support, low carbon economy and GDP. At the micro level, this paper uses dynamic panel data model to analyze the relationship between green loan, operational efficiency and financial performance. The empirical result shows that under the macroeconomic analysis framework, the support effect of the loan on low carbon economy is significant, on the other hand, the decreasing of energy consumption caused by the low carbon economy is not the granger cause of the credit loan, the endogenous development ability still needs to be formed, while under the microeconomic analysis framework, we find that the short-term loan negatively related with the operation efficiency, and long-term loan positively related with the operational efficiency, while combining the influence of these two categories, the loan does not have a significant impact on the operational efficiency and financial performance of the energy-saving and environment enterprises. From the micro level, the role of credit is still constrained for supporting the low carbon economy, and the efficiency. Although society pays more and more attention to low carbon economy, there is a far distance to fill the goal of low carbon economy establishment.