Green credit policy and residents' health: quasi-natural experimental evidence from China

Green credit policy and residents' health: quasi-natural experimental evidence from China

04 July 2024 | Mengyu Wang, Yichun Wang and Bingnan Guo
This study examines the impact of green credit policy on residents' health in China, using data from 262 prefecture-level cities from 2010 to 2021. The research employs a quasi-natural experiment approach, leveraging the implementation of the green credit policy as a quasi-natural experiment, and applies a time-varying Differences-in-Differences (DID) model to evaluate its effects. The findings indicate that the green credit policy significantly improves residents' health, with robustness tests confirming these results. Mechanism analysis reveals that the policy enhances health through improved environmental quality and increased public service standards. Heterogeneity analysis shows that the policy's impact is more pronounced in western cities and resource-based cities compared to central-eastern cities and non-resource-based cities. The study concludes by suggesting that China should broaden the scope of the green credit policy and refine its execution criteria to further enhance residents' health and promote sustainable development.This study examines the impact of green credit policy on residents' health in China, using data from 262 prefecture-level cities from 2010 to 2021. The research employs a quasi-natural experiment approach, leveraging the implementation of the green credit policy as a quasi-natural experiment, and applies a time-varying Differences-in-Differences (DID) model to evaluate its effects. The findings indicate that the green credit policy significantly improves residents' health, with robustness tests confirming these results. Mechanism analysis reveals that the policy enhances health through improved environmental quality and increased public service standards. Heterogeneity analysis shows that the policy's impact is more pronounced in western cities and resource-based cities compared to central-eastern cities and non-resource-based cities. The study concludes by suggesting that China should broaden the scope of the green credit policy and refine its execution criteria to further enhance residents' health and promote sustainable development.
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