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Assessing the effect of green finance on energy inequality in China via household-level analysis

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  • Lee, Chi-Chuan
  • Song, Hepeng
  • Lee, Chien-Chiang

Abstract

While previous research has investigated the determinants of urban–rural energy inequality (EI), the significance of green finance has rarely been examined. Using a comprehensive green finance development index and a Chinese provincial panel dataset, this research quantitatively investigates how green finance development impacts EI. Our empirical results reveal a significant U-shaped connection between green finance and urban–rural energy disparity, suggesting that moderate expansion of green finance can efficiently mitigate EI. In addition, this relationship is strongly pronounced in China's western region and is more prominently strengthened in provinces with higher energy activities and digital finance development levels but lower economic and social activity levels. These findings could be attributed to the nonlinear impacts of green finance on energy and industrial structure. Based on the findings, we propose several relevant policy recommendations to support China's plans for advancing the green economy and eradicating EI.

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  • Lee, Chi-Chuan & Song, Hepeng & Lee, Chien-Chiang, 2023. "Assessing the effect of green finance on energy inequality in China via household-level analysis," Energy Economics, Elsevier, vol. 128(C).
    • Handle: RePEc:eee:eneeco:v:128:y:2023:i:c:s0140988323006771
    DOI: 10.1016/j.eneco.2023.107179
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    More about this item

    Keywords

    Green finance; Energy inequality; Urban–rural inequality; China;
    All these keywords.

    JEL classification:

    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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