IDEAS home Printed from https://ideas.repec.org/a/eme/jrfpps/jrf-08-2023-0194.html
   My bibliography  Save this article

Can green finance promote high-quality energy development? The case of China

Author

Listed:
  • Bo Wang
  • Kangyin Dong
  • Farhad Taghizadeh-Hesary

Abstract

Purpose - China is a significant energy consumer with increasingly severe resource constraints and environmental problems, requiring low-carbon energy transformation and encouraging high-quality energy development (HED). Green finance significantly affects the effect on HED as a cutting-edge financial strategy to support environmental improvement and encourage green development. Design/methodology/approach - Using panel data from 30 provinces from 2007 to 2019 and the system-generalized method of moments method, this paper investigates the impact of green finance on HED, and further explores their threshold effect, heterogeneous and asymmetry analysis. Findings - The main results indicate that: (1) green finance positively affects HED in China; in other words, a 1% increase in the green finance index will boost HED by an average of 0.767%; (2) as the economy improves, the positive impact of green finance on HED will be even more significant and (3) the contribution of green finance to HED is more significant in the northern provinces and areas with lower HED levels. Originality/value - This paper puts forward relevant policy suggestions to further improve the construction of the green financial system.

Suggested Citation

  • Bo Wang & Kangyin Dong & Farhad Taghizadeh-Hesary, 2023. "Can green finance promote high-quality energy development? The case of China," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 25(1), pages 64-79, November.
    • Handle: RePEc:eme:jrfpps:jrf-08-2023-0194
    DOI: 10.1108/JRF-08-2023-0194
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/JRF-08-2023-0194/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/JRF-08-2023-0194/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/JRF-08-2023-0194?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.

    More about this item

    Keywords

    High-quality energy development (HED); Green finance; Threshold effect; Asymmetry analysis; China; C23; L86; Q43; Q56;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    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:eme:jrfpps:jrf-08-2023-0194. 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: Emerald Support (email available below). General contact details of provider: .

    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.