How Does Green Credit Policy Affect Sustainable Development Capacity of Enterprises in China?

The green credit policy has been one of the most important policies for solving resource and environmental problems and promoting sustainable economic and social development in China in recent years. Based on the mediating effect of green innovation input and the moderating effect of government subsidies, in this study the authors investigate the influence of the green credit policy on the sustainable development capacity of enterprises. The research shows that the green credit policy does not improve the sustainable development capacity of enterprises. The green credit policy promotes enterprises' green innovation input, and green innovation input plays an intermediary role between green credit policy and sustainable development capacity of enterprises. Government subsidies play a regulating role in the green credit policy, green innovation input, and sustainable development capacity of enterprises. Based on these findings, the authors suggest that the government, banks, and enterprises make joint efforts to improve the sustainable development capacity of enterprises as soon as possible.