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

Received: 9 December 2018     Published: 11 December 2018
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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.

Published in International Journal of Economics, Finance and Management Sciences (Volume 6, Issue 6)
DOI 10.11648/j.ijefm.20180606.14
Page(s) 269-276
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2018. Published by Science Publishing Group

Keywords

Credit Support, Low Carbon Economy, Granger Causality Test

References
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[2] Fangmin L, Jun W. Financial System and Renewable Energy Development: Analysis Based on Different Types of Renewable Energy Situation. Energy Procedia, 2011, 5: 829-833.
[3] El-Karmi F Z, Abu-Shikhah N M. The Role of Financial Incentives in Promoting Renewable Energy in Jordan. Renewable Energy, 2013, 57: 620-625.
[4] Campiglio E. Beyond carbon pricing: The role of banking and monetary policy in financing the transition to a low-carbon economy. Ecological Economics, 2015, in press.
[5] Wei M S, Patadia D M. Kammen. Putting renewables and energy efficiency to work: how many jobs can the clean energy industry generate in the US?. Energy Policy, 2010, 38 (2): 919–931.
[6] Cai Y, Mu C, Wang J. Distributional employment impacts of renewable and new energy – a case study of China. Renew Sustain Energy Rev, 2014, 39: 1155–1163.
[7] Lehr U, Nitsch J, Kratzat M, Lutz C, Edler D. Renewable energy and employment in Germany. Energy Policy, 2018, 36 (1): 108–117.
[8] Markaki M, Belegri-Roboli A, Michaelides P, Mirasgedis S, Lalas D P. The impact of clean energy investments on the Greek economy: an input–output analysis (2010–2020). Energy Policy, 2013, 57: 263–275.
[9] Zhang L. Financing constraints, financial reform and the development of low carbon economy. Communication of Finance and Accounting, 2015, (18): 95-99.
[10] Li S, Lei M. TOPSIS based assessment of low carbon economy development and spatial econometric analysis. Chinese Journal of Managment Science, 2014, 22 (11): 741-747.
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  • APA Style

    Shuai Wang, Zhizhang Li, Chen Wen. (2018). The Impact of Credit Support on Low Carbon Economy: An Empirical Study Base on Macro and Micro Economic Level in China. International Journal of Economics, Finance and Management Sciences, 6(6), 269-276. https://doi.org/10.11648/j.ijefm.20180606.14

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    ACS Style

    Shuai Wang; Zhizhang Li; Chen Wen. The Impact of Credit Support on Low Carbon Economy: An Empirical Study Base on Macro and Micro Economic Level in China. Int. J. Econ. Finance Manag. Sci. 2018, 6(6), 269-276. doi: 10.11648/j.ijefm.20180606.14

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    AMA Style

    Shuai Wang, Zhizhang Li, Chen Wen. The Impact of Credit Support on Low Carbon Economy: An Empirical Study Base on Macro and Micro Economic Level in China. Int J Econ Finance Manag Sci. 2018;6(6):269-276. doi: 10.11648/j.ijefm.20180606.14

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  • @article{10.11648/j.ijefm.20180606.14,
      author = {Shuai Wang and Zhizhang Li and Chen Wen},
      title = {The Impact of Credit Support on Low Carbon Economy: An Empirical Study Base on Macro and Micro Economic Level in China},
      journal = {International Journal of Economics, Finance and Management Sciences},
      volume = {6},
      number = {6},
      pages = {269-276},
      doi = {10.11648/j.ijefm.20180606.14},
      url = {https://doi.org/10.11648/j.ijefm.20180606.14},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20180606.14},
      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.},
     year = {2018}
    }
    

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  • TY  - JOUR
    T1  - The Impact of Credit Support on Low Carbon Economy: An Empirical Study Base on Macro and Micro Economic Level in China
    AU  - Shuai Wang
    AU  - Zhizhang Li
    AU  - Chen Wen
    Y1  - 2018/12/11
    PY  - 2018
    N1  - https://doi.org/10.11648/j.ijefm.20180606.14
    DO  - 10.11648/j.ijefm.20180606.14
    T2  - International Journal of Economics, Finance and Management Sciences
    JF  - International Journal of Economics, Finance and Management Sciences
    JO  - International Journal of Economics, Finance and Management Sciences
    SP  - 269
    EP  - 276
    PB  - Science Publishing Group
    SN  - 2326-9561
    UR  - https://doi.org/10.11648/j.ijefm.20180606.14
    AB  - 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.
    VL  - 6
    IS  - 6
    ER  - 

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Author Information
  • Economic School, Central South University of Forestry and Technology, Changsha, China

  • Economic School, Central South University of Forestry and Technology, Changsha, China

  • Economic School, Central South University of Forestry and Technology, Changsha, China

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