| Abstract: |
| Green loans are a way of financing green innovation. Two important factors, the lending
interest rate and the loaning scale, should be focused on. In this paper, we explore the impact of
lending interest rates and loaning scale on green innovation. We show that the incentive of green
innovation strongly depends on the lending interest rate and the loaning scale through model analysis.
Moreover, the dependence is summarized as a two-step strategy. In the first step, the lending interest
rate should be lower than some rate thresholds given in the paper. Otherwise, green innovation fails
to be stimulated. In the second step, if the lending interest rate is lower than the given rate threshold,
then the practical loaning scale should lie between two thresholds of loaning scale derived in the
paper, such that the green innovation will be stimulated. What is more, to guarantee the green effect
of the innovation on the environment, we construct a threshold of loaning scale. If the loaning scale is
larger than this threshold, then the innovation will show green e ect on the environment. Otherwise,
green innovation loses its environmental significance. The government stimulates green innovation
through government subsidy. In this paper, we consider three kinds of government subsidy, including
a subsidy for the bank, subsidy for the enterprise before and after implementing green innovation.
Some appropriate government subsidy scales are presented. |
|