Abstract:    Existing literatures mainly focus on the overall impact of green finance on green innovation, but generally overlook whether the upgraded green finance tool of energy efficiency credit can effectively stimulate the high-quality, substantive green innovation. Using the energy efficiency credit guidelines policy as a quasi-natural experiment, this study employed a difference-in-differences model with the data from A-share listed companies between 2012 and 2020 to examine the effect and mechanism of energy efficiency credit policy on corporate substantive green innovation. The results showed that the implementation of the energy efficiency credit policy effectively stimulates high-quality, substantive green innovation, but does not induce lowlevel, strategic green innovation. This has provided new micro-level evidence for the Porter Hypothesis. The mechanism analysis revealed that the policy promotes green innovation by attracting green investors, focusing executives′ attention on green issues, and reducing agency costs. The positive impact of the energy efficiency credit policy depends on the favorable moderating effects of factors such as differentiated strategies, internal controls, and media attention. Additionally, the policy has a more pronounced effect in regions with more strict financial regulations, a stronger gambling culture, and higher levels of digital economy development and social responsibility. This study will offer some microlevel evidence to support the acceleration of building a green finance system with Chinese characteristics.

Key words: energy efficiency credit policy, substantive green innovation, difference-in-differences model