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The Impact of Financial Development and Green Finance on Regional Energy Intensity: New Evidence from 30 Chinese Provinces

Author

Listed:
  • Kun Lv

    (Business School, Ningbo University, Ningbo 315211, China)

  • Shurong Yu

    (Business School, Ningbo University, Ningbo 315211, China)

  • Dian Fu

    (Teaching and Education College, Ningbo University, Ningbo 315211, China)

  • Jingwen Wang

    (Teaching and Education College, Ningbo University, Ningbo 315211, China)

  • Chencheng Wang

    (Business School, Ningbo University, Ningbo 315211, China)

  • Junbai Pan

    (Business School, Ningbo University, Ningbo 315211, China)

Abstract

Energy efficiency and energy intensity are gradually gaining attention, and it is now an important proposition to reconcile financial development, green finance, and regional energy intensity. Using Chinese mainland provincial panel data (except Tibet) from 2007 to 2019, this paper applied the spatial econometric model and the panel threshold model to investigate the effects of financial development and green finance on regional energy intensity. The paper discovered that financial development raises regional energy intensity, while green finance reduces it. Based on the panel threshold perspective, in different stages of green finance development, the effect of financial development on regional energy intensity presents an inverted U-shaped effect that first promotes and then inhibits. Meanwhile, green finance has a significant positive spatial transmission effect on regional energy intensity. Based on the spatial weight matrix reflecting regional economic relations, the increase in energy intensity has a significant negative spatial autoregressive effect on itself, and the spatial spillover effect of financial development is negligible.

Suggested Citation

  • Kun Lv & Shurong Yu & Dian Fu & Jingwen Wang & Chencheng Wang & Junbai Pan, 2022. "The Impact of Financial Development and Green Finance on Regional Energy Intensity: New Evidence from 30 Chinese Provinces," Sustainability, MDPI, vol. 14(15), pages 1-29, July.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:15:p:9207-:d:873023
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