14:15 - 15:45
Credit Supply and Green Investments
Does an increase in credit supply affect firms' likelihood to invest in green technologies? To answer this question, we use text algorithms to extract information on green investments from the comments to the financial statements of Italian SMEs between 2015 and 2019.
Wer
Wo
Zur Person
Emilia Garcia-Appendini is a Senior Research Economist at Norges Bank and a Senior Research Fellow at the University of Zurich - Department of Banking and Finance.
To join the lecture via Zoom, please register here.
Does an increase in credit supply affect firms' likelihood to invest in green technologies? To answer this question, we use text algorithms to extract information on green investments from the comments to the financial statements of Italian SMEs between 2015 and 2019. To identify the effect of credit supply, we use all loans disbursed by banks operating in Italy to construct a firm-specific time-varying instrument for credit availability. We find a large positive elasticity of green investments to credit supply. The effect is concentrated among firms with high availability of internal capital and in areas with higher preferences for environmental protection. Subsidies and market competition can spur green investments if combined with environmental awareness.
Ihr Kontakt
Wissenschaftliche Mitarbeiterin
Für Rückfragen stehe ich Ihnen gerne zur Verfügung.
+49 345 7753-753 Anfrage per E-Mail
