Bank Liquidity, Credit Supply, and the Environment / Ross Levine, Chen Lin, Zigan Wang, Wensi Xie.

Format:

Book

Author/Creator:

Levine, Ross.

Contributor:

National Bureau of Economic Research.

Lin, Chen.

Wang, Zigan.

Xie, Wensi.

Series:

Working Paper Series (National Bureau of Economic Research) no. w24375.

NBER working paper series no. w24375

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2018.

Summary:

We evaluate the impact of the credit conditions facing corporations on their emissions of toxic air pollutants. Exploiting cross-county, cross-time shale discoveries that generated liquidity windfalls at local bank branches, we construct measures of (1) the degree to which banks in non-shale counties, i.e., counties where shale was not discovered, receive liquidity shocks through their branches in shale counties and (2) the degree to which a corporation in a non-shale county has a relationship lender that receives liquidity shocks through its branches. From both the county- and firm-level analyses, we discover that positive shocks to credit conditions reduce corporate pollution.

Notes:

Print version record

March 2018.