IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v204y2023icp320-337.html

Impact of green finance on renewable energy development: A spatiotemporal consistency perspective

Author

Listed:
  • Tang, Xinmeng
  • Zhou, Xiaoguang

Abstract

The accurate understanding and grasping of green finance's role and effect process would help improve the accuracy of policies and, thereby, the development of renewable energy in China. Based on a newly built structural break modified SPDM (Spatial Panel Dobbin Model), this study explores the spatiotemporal consistency effects of green finance on renewable energy development and their geographical attenuation process. Several results could be obtained: (1) green finance plays an improving role in developing renewable energy in terms of both local and neighboring regions; (2) the effect objective areas of green finance are transferred from local regions to neighboring regions progressively as green finance grows in China, since the effect degree become weaker in local regions but stronger in neighboring regions; (3) the outflow phenomenon of green finance's effect on renewable energy development is stopped and reversed to siphon effect by the public health crisis that happened in 2019; (4) for green finance's spillover effects on renewable energy development, there are apparent geographic attenuation boundaries in areas near 700 km and impacting dense regions in areas near 350 km.

Suggested Citation

  • Tang, Xinmeng & Zhou, Xiaoguang, 2023. "Impact of green finance on renewable energy development: A spatiotemporal consistency perspective," Renewable Energy, Elsevier, vol. 204(C), pages 320-337.
    • Handle: RePEc:eee:renene:v:204:y:2023:i:c:p:320-337
    DOI: 10.1016/j.renene.2023.01.012
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148123000125
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.renene.2023.01.012?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

    for a different version of it.

    References listed on IDEAS

    as
    1. Yang, Yuxue & Su, Xiang & Yao, Shuangliang, 2021. "Nexus between green finance, fintech, and high-quality economic development: Empirical evidence from China," Resources Policy, Elsevier, vol. 74(C).
    2. Lee, Chi-Chuan & Lee, Chien-Chiang, 2022. "How does green finance affect green total factor productivity? Evidence from China," Energy Economics, Elsevier, vol. 107(C).
    3. László Halpern & Balázs Muraközy, 2007. "Does distance matter in spillover?1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 15(4), pages 781-805, October.
    4. Yang, Dong-xiao & Chen, Zi-yue & Yang, Yong-cong & Nie, Pu-yan, 2019. "Green financial policies and capital flows," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 522(C), pages 135-146.
    5. Fan, Jing-Li & Xu, Mao & Yang, Lin & Zhang, Xian, 2019. "Benefit evaluation of investment in CCS retrofitting of coal-fired power plants and PV power plants in China based on real options," Renewable and Sustainable Energy Reviews, Elsevier, vol. 115(C).
    6. Lei, Xiying & Alharthi, Majed & Ahmad, Ishtiaq & Aziz, Babar & Abdin, Zain ul, 2022. "Importance of international relations for the promotion of renewable energy, preservation of natural resources and environment: Empirics from SEA nations," Renewable Energy, Elsevier, vol. 196(C), pages 1250-1257.
    7. Dogan, Eyup & Madaleno, Mara & Taskin, Dilvin & Tzeremes, Panayiotis, 2022. "Investigating the spillovers and connectedness between green finance and renewable energy sources," Renewable Energy, Elsevier, vol. 197(C), pages 709-722.
    8. Yu, Chin-Hsien & Wu, Xiuqin & Zhang, Dayong & Chen, Shi & Zhao, Jinsong, 2021. "Demand for green finance: Resolving financing constraints on green innovation in China," Energy Policy, Elsevier, vol. 153(C).
    9. Wang, Rong & Zhao, Xing & Zhang, Ling, 2022. "Research on the impact of green finance and abundance of natural resources on China's regional eco-efficiency," Resources Policy, Elsevier, vol. 76(C).
    10. repec:bla:etrans:v:15:y:2007:i::p:781-805 is not listed on IDEAS
    11. Gyu Hyun Kim & Hoffmann Kim, 2022. "Non-fundamental home bias in international equity markets," International Economics, CEPII research center, issue 170, pages 213-234.
    12. Wang, Fayuan & Wang, Rong & He, Zhili, 2021. "The impact of environmental pollution and green finance on the high-quality development of energy based on spatial Dubin model," Resources Policy, Elsevier, vol. 74(C).
    13. Khan, Safi Ullah, 2022. "Financing constraints and firm-level responses to the COVID-19 pandemic: International evidence," Research in International Business and Finance, Elsevier, vol. 59(C).
    14. Faruqee, Hamid & Laxton, Douglas & Muir, Dirk & Pesenti, Paolo, 2008. "Would protectionism defuse global imbalances and spur economic activity? A scenario analysis," Journal of Economic Dynamics and Control, Elsevier, vol. 32(8), pages 2651-2689, August.
    15. Tu, Qiang & Mo, Jianlei & Liu, Zhuoran & Gong, Chunxu & Fan, Ying, 2021. "Using green finance to counteract the adverse effects of COVID-19 pandemic on renewable energy investment-The case of offshore wind power in China," Energy Policy, Elsevier, vol. 158(C).
    16. Yang, Zikun & Zhang, Mingming & Liu, Liyun & Zhou, Dequn, 2022. "Can renewable energy investment reduce carbon dioxide emissions? Evidence from scale and structure," Energy Economics, Elsevier, vol. 112(C).
    17. Sun, Haiyan & Chen, Fushan, 2022. "The impact of green finance on China's regional energy consumption structure based on system GMM," Resources Policy, Elsevier, vol. 76(C).
    18. He, Lingyun & Liu, Rongyan & Zhong, Zhangqi & Wang, Deqing & Xia, Yufei, 2019. "Can green financial development promote renewable energy investment efficiency? A consideration of bank credit," Renewable Energy, Elsevier, vol. 143(C), pages 974-984.
    19. Fareed, Zeeshan & Pata, Ugur Korkut, 2022. "Renewable, non-renewable energy consumption and income in top ten renewable energy-consuming countries: Advanced Fourier based panel data approaches," Renewable Energy, Elsevier, vol. 194(C), pages 805-821.
    20. Zhang, Dayong & Zhang, Zhiwei & Managi, Shunsuke, 2019. "A bibliometric analysis on green finance: Current status, development, and future directions," Finance Research Letters, Elsevier, vol. 29(C), pages 425-430.
    21. Kaika, Dimitra & Zervas, Efthimios, 2013. "The Environmental Kuznets Curve (EKC) theory—Part A: Concept, causes and the CO2 emissions case," Energy Policy, Elsevier, vol. 62(C), pages 1392-1402.
    22. Sharif, Arshian & Aloui, Chaker & Yarovaya, Larisa, 2020. "COVID-19 pandemic, oil prices, stock market, geopolitical risk and policy uncertainty nexus in the US economy: Fresh evidence from the wavelet-based approach," International Review of Financial Analysis, Elsevier, vol. 70(C).
    23. Wang, Moran & Li, Xuerong & Wang, Shouyang, 2021. "Discovering research trends and opportunities of green finance and energy policy: A data-driven scientometric analysis," Energy Policy, Elsevier, vol. 154(C).
    24. Adekoya, Oluwasegun B. & Ogunnusi, Timilehin P. & Oliyide, Johnson A., 2021. "Sector-by-sector non-renewable energy consumption shocks and manufacturing performance in the U.S.: Analysis of the asymmetric issue with nonlinear ARDL and the role of structural breaks," Energy, Elsevier, vol. 222(C).
    25. Jiang, Qingquan & Khattak, Shoukat Iqbal & Rahman, Zia Ur, 2021. "Measuring the simultaneous effects of electricity consumption and production on carbon dioxide emissions (CO2e) in China: New evidence from an EKC-based assessment," Energy, Elsevier, vol. 229(C).
    26. Kai Wang & Sang-Bing Tsai & Xiaomin Du & Datian Bi, 2019. "Internet Finance, Green Finance, and Sustainability," Sustainability, MDPI, vol. 11(14), pages 1-6, July.
    27. Zhang, Yong & Liu, Zhen & Baloch, Zulfiqar Ali, 2022. "Combining effects of private participation and green finance for renewable energy: Growth of economy as mediating tool," Renewable Energy, Elsevier, vol. 195(C), pages 1028-1036.
    28. Sharma, Gagan Deep & Sarker, Tapan & Rao, Amar & Talan, Gaurav & Jain, Mansi, 2022. "Revisiting conventional and green finance spillover in post-COVID world: Evidence from robust econometric models," Global Finance Journal, Elsevier, vol. 51(C).
    29. J. Elhorst, 2010. "Applied Spatial Econometrics: Raising the Bar," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(1), pages 9-28.
    30. Aparna Sengupta, 2017. "Testing for a Structural Break in a Spatial Panel Model," Econometrics, MDPI, vol. 5(1), pages 1-17, March.
    31. Zhang, Chenxi & Zhou, Dequn & Wang, Qunwei & Ding, Hao & Zhao, Siqi, 2022. "Will fiscal decentralization stimulate renewable energy development? Evidence from China," Energy Policy, Elsevier, vol. 164(C).
    32. Jianhua Ye & Ahmad Al-Fadly & Pham Quang Huy & Thanh Quang Ngo & Doan Dang Phi Hung & Nguyen Hoang Tien, 2022. "The nexus among green financial development and renewable energy: investment in the wake of the Covid-19 pandemic," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 35(1), pages 5650-5675, December.
    33. Kaika, Dimitra & Zervas, Efthimios, 2013. "The environmental Kuznets curve (EKC) theory. Part B: Critical issues," Energy Policy, Elsevier, vol. 62(C), pages 1403-1411.
    34. Li, Zeyun & Kuo, Tsung-Hsien & Siao-Yun, Wei & The Vinh, Luu, 2022. "Role of green finance, volatility and risk in promoting the investments in Renewable Energy Resources in the post-covid-19," Resources Policy, Elsevier, vol. 76(C).
    35. Castle, Jennifer L. & Kurita, Takamitsu, 2021. "A dynamic econometric analysis of the dollar-pound exchange rate in an era of structural breaks and policy regime shifts," Journal of Economic Dynamics and Control, Elsevier, vol. 128(C).
    36. O. V. Andreeva & N. G. Vovchenko & O. B. Ivanova & E. D. Kostoglodova, 2018. "Green Finance: Trends and Financial Regulation Prospects," Contemporary Studies in Economic and Financial Analysis, in: Contemporary Issues in Business and Financial Management in Eastern Europe, volume 100, pages 9-17, Emerald Group Publishing Limited.
    37. Bertone, Edoardo & Sahin, Oz & Stewart, Rodney A. & Zou, Patrick X.W. & Alam, Morshed & Hampson, Keith & Blair, Evan, 2018. "Role of financial mechanisms for accelerating the rate of water and energy efficiency retrofits in Australian public buildings: Hybrid Bayesian Network and System Dynamics modelling approach," Applied Energy, Elsevier, vol. 210(C), pages 409-419.
    38. Lv, Chengchao & Bian, Baocheng & Lee, Chien-Chiang & He, Zhiwen, 2021. "Regional gap and the trend of green finance development in China," Energy Economics, Elsevier, vol. 102(C).
    39. Yao, Huizong & Zang, Chuanfu, 2021. "The spatiotemporal characteristics of electrical energy supply-demand and the green economy outlook of Guangdong Province, China," Energy, Elsevier, vol. 214(C).
    40. Fukuda, Katsufumi & Ouchida, Yasunori, 2020. "Corporate social responsibility (CSR) and the environment: Does CSR increase emissions?," Energy Economics, Elsevier, vol. 92(C).
    41. Taghizadeh-Hesary, Farhad & Yoshino, Naoyuki, 2019. "The way to induce private participation in green finance and investment," Finance Research Letters, Elsevier, vol. 31(C), pages 98-103.
    42. Wang, Xinyue & Wang, Qing, 2021. "Research on the impact of green finance on the upgrading of China's regional industrial structure from the perspective of sustainable development," Resources Policy, Elsevier, vol. 74(C).
    43. Kim, Gyu Hyun & Kim, Hoffmann, 2022. "Non-fundamental home bias in international equity markets," International Economics, Elsevier, vol. 170(C), pages 213-234.
    44. Li, Menghan & Hamawandy, Nawzad Majeed & Wahid, Fazle & Rjoub, Husam & Bao, Zongke, 2021. "Renewable energy resources investment and green finance: Evidence from China," Resources Policy, Elsevier, vol. 74(C).
    45. Chang, Hsuan-Yu & Wang, Wei & Yu, Jihai, 2021. "Revisiting the environmental Kuznets curve in China: A spatial dynamic panel data approach," Energy Economics, Elsevier, vol. 104(C).
    46. Dogan, Eyup, 2016. "Analyzing the linkage between renewable and non-renewable energy consumption and economic growth by considering structural break in time-series data," Renewable Energy, Elsevier, vol. 99(C), pages 1126-1136.
    47. Wang, Changjian & Wang, Fei & Zhang, Xinlin & Yang, Yu & Su, Yongxian & Ye, Yuyao & Zhang, Hongou, 2017. "Examining the driving factors of energy related carbon emissions using the extended STIRPAT model based on IPAT identity in Xinjiang," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 51-61.
    48. Cecile Batisse & Sandra Poncet, 2004. "Protectionism and Industry Location in Chinese Provinces," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 2(2), pages 133-154.
    49. Xi Chen & Zhigang Chen, 2021. "Can Green Finance Development Reduce Carbon Emissions? Empirical Evidence from 30 Chinese Provinces," Sustainability, MDPI, vol. 13(21), pages 1-18, November.
    50. Wu, Rong & Wang, Jieyu & Wang, Shaojian & Feng, Kuishuang, 2021. "The drivers of declining CO2 emissions trends in developed nations using an extended STIRPAT model: A historical and prospective analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 149(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tao Shi, 2022. "The Spatiotemporal Evolutionary Trend and Driving Factors of the Coupling Coordinated Development between Regional Green Finance and Ecological Environment," IJERPH, MDPI, vol. 19(10), pages 1-25, May.
    2. Xinmeng Tang & Xiaoguang Zhou & Moustafa Mohamed Nazief Haggag Kotb Kholaif, 2024. "Does green finance achieve its goal of promoting coordinated development of economy–environment? Using the pollutant emission efficiency as a proxy," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(4), pages 9973-10002, April.
    3. Lin, Tao & Zhang, Ling & Li, Jianglong, 2024. "Coupling and coordinated development of green finance and renewable energy industry in China: Spatiotemporal differentiation and driving factors," Renewable Energy, Elsevier, vol. 235(C).
    4. Pang, Lidong & Zhu, Meng Nan & Yu, Haiyan, 2022. "Is green finance really a blessing for green technology and carbon efficiency?," Energy Economics, Elsevier, vol. 114(C).
    5. Li, Songran & Shao, Qinglong, 2022. "Greening the finance for climate mitigation: An ARDL–ECM approach," Renewable Energy, Elsevier, vol. 199(C), pages 1469-1481.
    6. Lee, Chien-Chiang & Yuan, Zihao & Kang, Yongchao, 2024. "Green finance and land ecological security: A potential mechanism for sustainable development," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 1222-1241.
    7. Xue, Yan & Hu, Dongmei & Irfan, Muhammad & Wu, Haitao & Hao, Yu, 2023. "Natural resources policy making through finance? The role of green finance on energy resources poverty," Resources Policy, Elsevier, vol. 85(PA).
    8. Yayun Ren & Jian Yu & Shuhua Xu & Jiaomei Tang & Chang Zhang, 2023. "Green Finance and Industrial Low-Carbon Transition: Evidence from a Quasi-Natural Experiment in China," Sustainability, MDPI, vol. 15(6), pages 1-17, March.
    9. Lu, Yuchen & Gao, Yuqiang & Zhang, Yu & Wang, Junrong, 2022. "Can the green finance policy force the green transformation of high-polluting enterprises? A quasi-natural experiment based on “Green Credit Guidelines”," Energy Economics, Elsevier, vol. 114(C).
    10. Liu, Yang & Zhao, Xiaomeng & Dong, Kangyin & Jiang, Qingzhe, 2023. "Assessing the role of green finance in sustainable energy investments by power utilities: Evidence from China," Utilities Policy, Elsevier, vol. 84(C).
    11. Zhao, Qian & Qin, Chuan & Ding, Longfei & Cheng, Ying-Yue & Vătavu, Sorana, 2023. "Can green bond improve the investment efficiency of renewable energy?," Energy Economics, Elsevier, vol. 127(PB).
    12. He, Junming & Iqbal, Wasim & Su, Fangli, 2023. "Nexus between renewable energy investment, green finance, and sustainable development: Role of industrial structure and technical innovations," Renewable Energy, Elsevier, vol. 210(C), pages 715-724.
    13. Wang, Shuguang & Sun, Luang & Iqbal, Sajid, 2022. "Green financing role on renewable energy dependence and energy transition in E7 economies," Renewable Energy, Elsevier, vol. 200(C), pages 1561-1572.
    14. Bakry, Walid & Mallik, Girijasankar & Nghiem, Xuan-Hoa & Sinha, Avik & Vo, Xuan Vinh, 2023. "Is green finance really “green”? Examining the long-run relationship between green finance, renewable energy and environmental performance in developing countries," Renewable Energy, Elsevier, vol. 208(C), pages 341-355.
    15. Jie Han & Wei Zhang & Cem Işık & Wenju Zhao & Muhammad Anas & Qinglan Zheng & Danxi Xie & Satar Bakhsh, 2024. "Sustainable development pathways: Exploring the impact of green finance on urban metabolic efficiency," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(6), pages 7226-7245, December.
    16. Saxena Ashish & Tiwari Sadhana & Bhardwaj Shashank & Srivastava Shweta & Kumar Nitendra, 2023. "A Bibliometric Review of Green Finance: Current Status, Development and Future Directions," Folia Oeconomica Stetinensia, Sciendo, vol. 23(2), pages 331-351, December.
    17. Sharma, Gagan Deep & Verma, Mahesh & Shahbaz, Muhammad & Gupta, Mansi & Chopra, Ritika, 2022. "Transitioning green finance from theory to practice for renewable energy development," Renewable Energy, Elsevier, vol. 195(C), pages 554-565.
    18. Wang, Yafei & Shi, Ming & Zhao, Zihan & Liu, Junnan & Zhang, Shiqiu, 2025. "How does green finance improve the total factor energy efficiency? Capturing the mediating role of green management innovation and embodied technological progress," Energy Economics, Elsevier, vol. 142(C).
    19. Lee, Chien-Chiang & Wang, Fuhao & Lou, Runchi & Wang, Keying, 2023. "How does green finance drive the decarbonization of the economy? Empirical evidence from China," Renewable Energy, Elsevier, vol. 204(C), pages 671-684.
    20. Xing Xiong & Yuxing Wang & Bin Liu & Wenhong He & Xinghou Yu, 2023. "The impact of green finance on the optimization of industrial structure: Evidence from China," PLOS ONE, Public Library of Science, vol. 18(8), pages 1-30, August.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:renene:v:204:y:2023:i:c:p:320-337. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.journals.elsevier.com/renewable-energy .

    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.