IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v202y2025ics0301421525001144.html
   My bibliography  Save this article

Green finance reform under climate policy uncertainty: Implications for energy transition and security

Author

Listed:
  • Gao, Weilong

Abstract

The positive role of green finance reform (GFR) in promoting energy transition (ET) and ensuring energy security (ES) has been widely discussed, but no research has yet thoroughly examined the specific effects of GFR under climate policy uncertainty (CPU). To address this gap, this study employs a dynamic system model and panel data from 333 Chinese cities spanning 2006 to 2021, applying a multi-period difference-in-differences (DID) approach to capture the temporal and spatial variations in how GFR influences ET and ES under CPU. The results demonstrate that GFR significantly promotes low-carbon ET, but its effectiveness is hindered by CPU. Regional disparities are evident, with stronger adverse effects in cities characterized by lower ES, traditional industrial structures, and poorer environmental quality. Additionally, credit constraints and frequent green technology updates amplify the adverse effects of CPU on GFR's effectiveness. While ET provides notable short-term improvements in ES, these benefits diminish over time due to diminishing marginal returns and technological saturation. This study provides a novel perspective on GFR under uncertainty and underscores the necessity of stable climate policies and region-specific strategies to fully leverage the potential of GFR in advancing energy sustainability and mitigating policy-induced uncertainties.

Suggested Citation

  • Gao, Weilong, 2025. "Green finance reform under climate policy uncertainty: Implications for energy transition and security," Energy Policy, Elsevier, vol. 202(C).
    • Handle: RePEc:eee:enepol:v:202:y:2025:i:c:s0301421525001144
    DOI: 10.1016/j.enpol.2025.114607
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421525001144
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2025.114607?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:202:y:2025:i:c:s0301421525001144. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.