How Does Green Credit Affect Corporate Green Investment Efficiency? A Test Based on Listed Corporations in China’s Heavy Pollution Industry

Green credit significantly aids green industry development and energy transformation. However, can green credit incentivize heavy polluting corporations to accelerate their green transformation? To assess this question, this research analyzed how green credit affects green investment efficiency of heavy polluting corporations. A fixed-effects model was applied to explore the impact, followed by a threshold effect model to assess whether there is a nonlinear relationship under the effect of other factors. The study shows that green credit can significantly improve the green investment efficiency of heavy polluting corporations. From an internal control perspective, this improvement is significant for corporations that are state-owned or have low executive shareholding. From an external regulation perspective, the improvement is significant for the areas with low financial and environmental regulation. Green credit is influenced by the corporate asset–liability ratio and executives’ green thinking; both have non-linear, single-threshold effects on corporate green investment efficiency.