DEVELOPING A GREEN ECONOMY AND INVESTING IN RENEWABLE ENERGY ALONG WITH GREEN CREDIT

Abstract

By analyzing 146 Chinese companies listed in renewable energy, this paper constructs a model effect threshold to study the non-linear relationship between investment in renewable energy and the economic development index from a green credit perspective. The results mainly show that: First, the impact of renewable energy investments on the green economy development index involves double-threshold effects of green credit, the effect is divided into three stages: promote, restrict and promote successively. Second, for large companies, the impact of renewable energy investments on the green economy development index involves a green credit threshold, with effect coefficients at each stage of 0.1034 and 0.0113, successively. However, for medium, small and micro enterprises, the impact of investments in renewable energies on the development of the green economy index involves the double-threshold effects of green credit, with the effect coefficients at each stage being 0.1308, 0.0033 and 0.0243, successively, and the inhibitory effect is not significant. Third, our results also show that improving spending on environmental pollution control and adjusting the industry structure contribute to increasing the rate of green economy development.