ORIGINAL RESEARCH
Environmental Credit-Based Governance
and Green Finance: A Study of the Promulgation
of the Law of Environmental Credit Evaluation
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1
School of Business, Taizhou University, Taizhou, 318000, China
2
School of Law, Fuzhou University, Fuzhou 350108, China
3
Jiaojiang District Special Education School, Taizhou, 318000, China
Submission date: 2023-03-23
Final revision date: 2023-10-26
Acceptance date: 2023-11-30
Online publication date: 2024-05-20
Publication date: 2024-06-07
Corresponding author
Qianqian Li
Jiaojiang District Special Education School, Taizhou, 318000, China
Pol. J. Environ. Stud. 2024;33(4):4917-4931
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ABSTRACT
Green finance is an important aspect of the modern Chinese financial system with high-quality
development, but best practices in promoting its rapid development have yet to be robustly explored.
This study first analyzes the difficulty in the current development of green finance in China and its
causes, and then analyzes the impact mechanism of new governance measures based on the results of
an enterprise environmental credit evaluation conducted on green finance. Using the panel data of 280
cities from 2010 to 2021, we take 43 credit construction demonstration cities that have been approved
by the state as quasinatural experiments for the construction of a multiple-timepoint double-difference
model. The study finds that the environmental credit governance, as represented by a credit construction
demonstration city, significantly promotes the local green finance level, and the mechanism test confirms
that this positive effect was achieved by accelerating the data factorization. In addition, we find that the
effect of environmental credit governance is more obvious in cities with higher administrative levels and
more advantageous geographical locations. We provide further micro theoretical support for China’s
goal of achieving the two major political tasks of ecological environmental protection and social credit
construction, and provide new inspiration for optimizing environmental governance strategies.