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Exploring the role of green finance in advancing the shift to green energy: Insights from industrial enterprises in China

Author

Listed:
  • Wang, Tieshan
  • Zhang, Yuxuan
  • Wang, Tieyan
  • Yuan, Haoxin
  • Hu, Yibo
  • Zhang, Xuepeng

Abstract

China's green energy transition is a central component of its sustainable development strategy. This transition relies heavily on the Green Credit System (GCS)—a policy framework designed to direct bank lending toward environmentally sustainable projects. However, the synergistic coordination between green finance (GF) and clean energy (CE) development at the sub-national level remains poorly understood. This study analyses the coupling coordination between CE and GF across 30 Chinese provinces from 2011 to 2020. Using a multi-method approach—entropy-TOPSaling Coordination Degree (CCD) model, spatial analysis, and fuzzy-set qualitative comparative analysis (fsQCA)—we find that while national coordination improved from moderate to minimal imbalance, significant regional disparities persist. Crucially, fsQCA identifies three distinct, sufficient pathways to high complementarity, demonstrating that success stems from the combination of financial depth, technological intensity, and industrial structure, han a single formula. The empirical findings reveal that from 2011 to 2020, China's coupling coordination between clean energy and green finance increased from 0.3341 to 0.4718, but at an unbalanced level. Regional differences are identified, where there are areas of high-value clustering, and other regions are characterized by uneven development. External forces like national policies and economic shocks had probably also shaped these regional patterns, and more developed areas would have benefited more from policy support. The study concludes that provinces should make their policies depending on their local conditions in order to facilitate integrated growth. The fsQCA approach offers essential perspectives on emerging coordination pathways, so necessary for the growth of the connection between clean energy and green finance in China, with an eye to a balanced and sustainable future.

Suggested Citation

  • Wang, Tieshan & Zhang, Yuxuan & Wang, Tieyan & Yuan, Haoxin & Hu, Yibo & Zhang, Xuepeng, 2025. "Exploring the role of green finance in advancing the shift to green energy: Insights from industrial enterprises in China," Energy, Elsevier, vol. 341(C).
    • Handle: RePEc:eee:energy:v:341:y:2025:i:c:s0360544225050212
    DOI: 10.1016/j.energy.2025.139379
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