Green credit policy and green innovation in green industries: Does climate policy uncertainty matter?

We explore the influence of the green credit policy (GCP) on green enterprises' green innovation behaviour and the moderating effect of climate policy uncertainty (CPU). We find that the GCP enhances strategic and substantive green innovation behaviour in green enterprises, and the promotion effect of the former is greater. Higher CPU positively moderates the relationship between the GCP and green innovation. The CPU perception weakens the green innovation effect of the GCP. Moreover, managerial myopia and government R&D subsidies have heterogeneous effects on the green innovation effect of the GCP in a context of increasing CPU and CPU perception.

Automated summary

This study explores the influence of the green credit policy (GCP) on green enterprises' green innovation behavior and the moderating effect of climate policy uncertainty (CPU). The findings show that the GCP enhances both strategic and substantive green innovation behavior in green enterprises, with the former having a greater promotion effect. Higher levels of CPU positively moderate the relationship between the GCP and green innovation. However, the perception of CPU weakens the green innovation effect of the GCP. Moreover, managerial myopia and government R&D subsidies have heterogeneous effects on the green innovation effect of the GCP in a context of increasing CPU and CPU perception.