A Study On The Impact Of The Green Financial Policy On Total Factor Productivity Of Heavy Polluting Enterprises

In June 2017,China officially established the first batch of green financial reform and innovation pilot zones after completing the top-level design of building a green financial system.The development of green finance is an important means to achieve green development and high-quality development of economy.Green finance policies redirect the flow of financial resources with a view to promoting the development of green industries and the transformation of polluting industries.As an important contributor to economic growth,the improvement of total factor productivity of heavy polluting enterprises is also critical to improve the quality of economic development.As a result,from the standpoint of high-quality economic development,this paper investigates the specific impact of the implementation of the green finance policy on the total factor productivity of heavy polluting enterprises,with the goal of answering three questions:(1)Will the green financial policy affect the total factor productivity of heavy polluting enterprises?(2)If there is an impact,what is the micro-mechanism that produces that effect?(3)Is this effect heterogeneous to different heavy polluting enterprises?Based on data from China’s A-share listed heavy polluting enterprises from 2010 to 2019,this paper employs the dual differential measurement model to conduct an empirical analysis of the impact of the green finance policy on the total factor productivity of heavy polluting enterprises in the pilot zones,with the establishment of the first batch of green finance reform and innovation pilot zones in 2017 serving as a quasi-natural experiment.The implementation of the green finance policy had a significant negative impact on the total factor productivity level of heavy polluting enterprises in the pilot zones during the sample period,according to the empirical analysis results.The transmission mechanism of this impact is that after the implementation of the green finance policy,in the face of external capital restrictions and internal cost constraints,heavy polluting enterprises will reduce R&D investment and fixed asset investment,resulting in a decline in total factor productivity.In addition,this paper also explores the specific differences in this impact from three aspects: enterprise ownership,region and life cycle stage,and the results show that non-state-owned heavy polluting enterprises,heavy polluting enterprises located in the central and western regions,and heavy polluting enterprises in the recession period are more obviously affected by the negative impact of the green financial policy.According to the empirical findings,this paper makes the following recommendations: in the implementation of green financial policies,provide special R&D subsidies to heavy polluting enterprises;reduce heavy polluting enterprises’ pollution control costs;allow non-state-owned heavy polluting enterprises and heavy polluting enterprises located in the central and western regions to obtain financial resources while controlling pollution;and actively guide and help heavy polluting enterprises in the recession period to transform and invest into green industry;heavy polluting enterprises should also pay attention to environmental protection during the manufacturing process.Overall,the research in this paper provides certain reference opinions for the follow-up implementation and promotion of green finance policies and the improvement of the quality of economic development.