ABSTRACT

SMEs make increasingly outstanding contributions to the real economy, and

financing is the key factor to their development. Currently, credit is the main
financing channel of SEMs in China, and carbon credit is an inevitable trend. On the
basis of carbon credits, this paper try to establish a game model between SMEs and
bank, seek an ideal game results Nash equilibrium. We find that Nash equilibrium is
(taking no measures, lending) without any constraints. Obviously, it is disappointing.
Thus, environmental protection bureaus should increase condemnatory strength on
SMEs whose carbon reduction is substandard and the higher authority and regulator
should also increase the punishment on bank in order to prevent it lend to SMEs with
carbon reduction substandard. We suggest that it is necessary to eliminate conspiracy,
strengthen penalties on pollution incidents and establish SMEs Union and so on.