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Financial inclusion and green economic performance for energy efficiency finance

Author

Listed:
  • Zhen Liu

    (Nanjing Normal University)

  • Trong Lam Vu

    (Communist Review, Vietnam)

  • Thi Thu Hien Phan

    (Foreign Trade University)

  • Thanh Quang Ngo

    (University of Economics Ho Chi Minh City
    University of Economics Ho Chi Minh City)

  • Nguyen Ho Viet Anh

    (Van Lang University)

  • Ahmad Romadhoni Surya Putra

    (Universitas Gadjah Mada)

Abstract

Financial inclusion is fundamental for increasing the nation’s performance and green economy has emerged as one of the dominant factors to ecological sustainability, but how will these two factors connect? This research analyzes the correlation between the two in the case of China, which is undergoing a transformation to a green economy, using state-level statistics from 2008 to 2020 to evaluate the connection between financial inclusion and the green economy. By taking into account the fast-expanding technology banking system, as well as the application of the minimum distance to the weak efficient frontier framework (MinDw), a comprehensive assessment of financial inclusion is created, as is an assessment of green economic productivity. The findings show that the expansion of financial inclusion may contribute to increased green economic proficiency, which is primarily achieved via the tightening of credit restrictions on carbon emitting companies. The results have more consequences for the implementation of a financial development strategy and the maintenance of healthy associations between the state, banking institutions, and businesses.

Suggested Citation

  • Zhen Liu & Trong Lam Vu & Thi Thu Hien Phan & Thanh Quang Ngo & Nguyen Ho Viet Anh & Ahmad Romadhoni Surya Putra, 2022. "Financial inclusion and green economic performance for energy efficiency finance," Economic Change and Restructuring, Springer, vol. 55(4), pages 2359-2389, November.
    • Handle: RePEc:kap:ecopln:v:55:y:2022:i:4:d:10.1007_s10644-022-09393-5
    DOI: 10.1007/s10644-022-09393-5
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