LAUSR

The green credit is one of the effective tools to save energy and reduce pollution, which mainly applies in industry. Thus, this paper explores the impact of green credit on the upgrading of China’s industrial structure from the perspective of industrial sectors, by means of a dynamic panel model with the dada from 2005 to 2016. The upgrading of industrial structure is divided into three dimensions to be analyzed—rationalization of industrial structure (RIS), advancement of industrial structure (AIS), and greenization of industrial structure (GIS). The empirical results are also explained by four influence mechanisms—resource allocation, technological innovation, credit catalysis, and policy guidance mechanism. This paper finds that on the national level, green credit has a positive impact on the upgrading of China’s industrial structure and plays a significant role in promoting the greenization and advancement of industrial structure. However, on the regional level, the effect of green credit is more complex. First, green credit has a significant positive effect on the GIS in the eastern, central, and western regions of China, which suggests that green credit is conductive to the cleaner production of industry across the country. Second, green credit also has a positive impact on the AIS in these three regions, but the effect is only significant in the eastern region. Third, in terms of the RIS, the effect of green credit is positive but not significant in the eastern and central regions. However, it is negative, not significant as well, in the western region, which can be explained from the perspective of the resource allocation and technological innovation mechanism. In addition, there is a significant positive correlation between the previous period and the current value of RIS, AIS, and GIS, which indicates that there is a significant positive inertia dynamic feature in the upgrading of China’s industrial structure.