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Mechanisms and heterogeneity of energy consumption intensity, financial support, and environmental protection

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  • Nie, Peng
  • Huang, GuanHao
  • Ren, Zhengliang

Abstract

This study utilizes data from 31 provincial-level regions across China (excluding Hong Kong, Macao, and Taiwan) covering the period from 2007 to 2023 to thoroughly analyze the interplay among energy consumption intensity, financial investment, and environmental protection efforts. The study finds that both energy intensity and financial support show significant positive correlations with a higher level of environmental protection. Further analysis reveals a synergistic effect between energy consumption intensity and financial support, with their joint action playing a prominent role in promoting environmental protection. Heterogeneity analysis indicates that the impacts of financial support and energy consumption intensity on environmental protection vary significantly across regions with different environmental regulation intensities. Mechanism tests demonstrate that financial support serves as a partial mediator in the process by which energy consumption intensity affects environmental protection, and this mediating effect exhibits notable heterogeneity across regions with varying levels of technological innovation investment.

Suggested Citation

  • Nie, Peng & Huang, GuanHao & Ren, Zhengliang, 2025. "Mechanisms and heterogeneity of energy consumption intensity, financial support, and environmental protection," Finance Research Letters, Elsevier, vol. 86(PE).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pe:s1544612325019956
    DOI: 10.1016/j.frl.2025.108741
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