IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i18p11250-d909811.html
   My bibliography  Save this article

Impact of Digital Finance on Energy Efficiency in the Context of Green Sustainable Development

Author

Listed:
  • Chengying Yang

    (School of Management, Universiti Sains Malaysia (USM), Penang 11800, Malaysia)

  • Tajul Ariffin Masron

    (School of Management, Universiti Sains Malaysia (USM), Penang 11800, Malaysia)

Abstract

Limited by ecological conditions, in order to improve the innovation efficiency concerning energy, a change from “extensive” to “green” is required. The development of sustainable technology is the most important productive force. Economic development is centered on finance. Only by mutual penetration and interaction can China’s energy innovation be effectively promoted. “Green GDP (Gross Domestic Product)” is the main direction of China’s current economic development. A sustainable green digital economy is the primary condition for promoting energy efficiency, and it is the key to improving energy efficiency in China to achieve a green transition. Green finance for sustainable development refers to economic finance centered on energy conservation, environmental protection and technological innovation. Attention is constantly paid to the financial industry in China, and we are trying to combine the concept of environmental protection with financial development to promote the continuous development of China’s environmental protection economy. A company’s economic and environmental benefits will be improved from the point of view of improving resource conservation and reducing the environmental impact of equipment and processes. To achieve this goal, the “efficiency effect” of the financial system needs to be fully exploited to maximize energy efficiency. An empirical study about the relationship of financial performance and energy efficiency in the green sector is carried out while considering the environmental constraints. The results show that the expansion of the financial scale and the adjustment of the financial structure have increased the energy utilization efficiency by more than 15% from the past to the present and reduced the pollution of the ecological environment by more than 10% nationwide, realizing the effective allocation of resources. Digital finance is a new generation of financial services that combines the Internet and information technology with traditional financial service formats. Including Internet payment, mobile payment, online banking, financial service outsourcing and online loans, online insurance, online funds and other financial services. Therefore, the sustainable development of all aspects of finance has a huge catalytic effect on the doubling of energy utilization efficiency.

Suggested Citation

  • Chengying Yang & Tajul Ariffin Masron, 2022. "Impact of Digital Finance on Energy Efficiency in the Context of Green Sustainable Development," Sustainability, MDPI, vol. 14(18), pages 1-17, September.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:18:p:11250-:d:909811
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/18/11250/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/18/11250/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Libo Li & Wenbing Wu & Mingyu Zhang & Lu Lin, 2021. "Linkage Analysis between Finance and Environmental Protection Sectors in China: An Approach to Evaluating Green Finance," IJERPH, MDPI, vol. 18(5), pages 1-16, March.
    2. Chen, Weidong & Geng, Wenxin, 2017. "Fossil energy saving and CO2 emissions reduction performance, and dynamic change in performance considering renewable energy input," Energy, Elsevier, vol. 120(C), pages 283-292.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ghaemi Asl, Mahdi & Ben Jabeur, Sami & Hosseini, Seyedeh Sana & Tajmir Riahi, Hamed, 2024. "Fintech's impact on conventional and Islamic sustainable equities: Short- and long-term contributions of the digital financial ecosystem," Global Finance Journal, Elsevier, vol. 62(C).
    2. Malin Song & Heting Pan & Michael Vardanyan & Zhiyang Shen, 2023. "Evaluating the energy efficiency-enhancing potential of the digital economy: Evidence from China," Post-Print hal-04277444, HAL.
    3. He Li & Nurhafiza Abdul Kader Malim & Xiaojun Xie & Xuyang Du, 2025. "Interaction Effects of Green Finance and Digital Platforms on China’s Economic Growth," Sustainability, MDPI, vol. 17(18), pages 1-16, September.
    4. Muhammad Naveed Jamil & Dr. Abdul Rasheed, 2023. "Role Of External Finance And Innovation In Achieving Eco-Efficiency And Sustainable Development Goals," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(2), pages 339-355.
    5. Tomasz Neumann, 2023. "Efficient Use of Low-Emission Power Supply for Means of Transport," Energies, MDPI, vol. 16(8), pages 1-14, April.
    6. Muhammad Mushafiq & Muzammil Muhammad Khan Arisar & Hanan Tariq & Stanislaw Czapp, 2023. "Energy Efficiency and Economic Policy: Comprehensive Theoretical, Empirical, and Policy Review," Energies, MDPI, vol. 16(5), pages 1-22, March.
    7. Yuxin Ning & Yihan Zhang, 2023. "Does Digital Finance Improve Corporate ESG Performance? An Intermediary Role Based on Financing Constraints," Sustainability, MDPI, vol. 15(13), pages 1-17, July.
    8. Nidhi Karwasra & Vani Aggarwal, 2024. "Impact of Digital Competitiveness on Sustainable Development: A Systematic Literature Review," International Journal of Global Business and Competitiveness, Springer, vol. 19(1), pages 51-63, December.
    9. Lihui Li & Huimin Wang, 2023. "Influence of Green Investment on China’s Sustainable Development," Sustainability, MDPI, vol. 15(12), pages 1-19, June.
    10. Huaxing Wang & Yanzhao Zeng & Jiali Zhang & Shuhui Yu & Zeyu Wang & Yue Deng, 2025. "Sustainable performance analysis and environmental protection optimization of green entrepreneurship-driven energy enterprises," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-13, December.
    11. Liu, Weidong & Chen, Xi, 2025. "Evaluating the impact of energy efficiency on green growth in Chinese cities: A spatial Durbin model approach," Energy, Elsevier, vol. 322(C).
    12. Yi Yang & Shuhe Shi & Jingjing Wu, 2022. "Digital Financial Inclusion to Corporation Value: The Mediating Effect of Ambidextrous Innovation," Sustainability, MDPI, vol. 14(24), pages 1-23, December.
    13. Bie, Fan & Zhou, Luyao & Liu, Shuo & Yang, Tao, 2024. "Government digital transformation, resource curse and green total factor energy efficiency in Chinese cities," Resources Policy, Elsevier, vol. 92(C).

    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. Ruxu Sheng & Rong Zhou & Ying Zhang & Zidi Wang, 2021. "Green Investment Changes in China: A Shift-Share Analysis," IJERPH, MDPI, vol. 18(12), pages 1-15, June.
    2. Magoua Mbeugang, Christian Fabrice & Li, Bin & Lin, Dan & Xie, Xing & Wang, Shuaijun & Wang, Shuang & Zhang, Shu & Huang, Yong & Liu, Dongjing & Wang, Qian, 2021. "Hydrogen rich syngas production from sorption enhanced gasification of cellulose in the presence of calcium oxide," Energy, Elsevier, vol. 228(C).
    3. Xiangnan Zhai & Xue Yang & Darko B. Vukovic & Daria A. Dinets & Qiang Liu, 2025. "Carbon Emissions Trading Policy and Regional Energy Efficiency: A Quasi-Natural Experiment from China," Energies, MDPI, vol. 18(5), pages 1-20, February.
    4. Abbas Mardani & Dalia Streimikiene & Tomas Balezentis & Muhamad Zameri Mat Saman & Khalil Md Nor & Seyed Meysam Khoshnava, 2018. "Data Envelopment Analysis in Energy and Environmental Economics: An Overview of the State-of-the-Art and Recent Development Trends," Energies, MDPI, vol. 11(8), pages 1-21, August.
    5. Khan, Jamal & Li, Yuan & Mahsud, Qaiser Jamal, 2024. "Linkages and Structural Changes in the Chinese Financial Sector, 1996–2018: A Network and Input–Output Approach," Structural Change and Economic Dynamics, Elsevier, vol. 70(C), pages 33-44.
    6. Khalid, Fahad & Irfan, Muhammad & Srivastava, Mohit, 2024. "The impact of digital inclusive finance on ESG disputes: Evidence from Chinese non-financial listed companies," Technological Forecasting and Social Change, Elsevier, vol. 204(C).
    7. Ying Fu & Zhaohan Wang & Yun Wang, 2024. "Green Financial Policy for Fostering Green Technological Innovation: The Role of Financing Constraints, Science Expenditure, and Heightened Industrial Structure," Sustainability, MDPI, vol. 16(20), pages 1-26, October.
    8. Yang, Hanmin & Cui, Yuxiao & Han, Tong & Sandström, Linda & Jönsson, Pär & Yang, Weihong, 2022. "High-purity syngas production by cascaded catalytic reforming of biomass pyrolysis vapors," Applied Energy, Elsevier, vol. 322(C).
    9. Yang, Xiaohu & Guo, Zengxu & Liu, Yanhua & Jin, Liwen & He, Ya-Ling, 2019. "Effect of inclination on the thermal response of composite phase change materials for thermal energy storage," Applied Energy, Elsevier, vol. 238(C), pages 22-33.
    10. Islam, M.S. & Das, Barun K. & Das, Pronob & Rahaman, Md Habibur, 2021. "Techno-economic optimization of a zero emission energy system for a coastal community in Newfoundland, Canada," Energy, Elsevier, vol. 220(C).
    11. Attila Bai & József Popp & Károly Pető & Irén Szőke & Mónika Harangi-Rákos & Zoltán Gabnai, 2017. "The Significance of Forests and Algae in CO 2 Balance: A Hungarian Case Study," Sustainability, MDPI, vol. 9(5), pages 1-24, May.
    12. Du, Juan & Xu, Yanhong & Wang, Yi, 2023. "How to improve sustainability for industrial sectors: Optimizing production scales based on performance-oriented resource reallocation," Energy Economics, Elsevier, vol. 119(C).
    13. Marcos Ferasso & Miguel Blanco & Lydia Bares, 2021. "A Data Envelopment Analysis of the Impact of European Funds on Environmental Indicators," IJERPH, MDPI, vol. 18(6), pages 1-15, March.
    14. Chen, Jiandong & Gao, Ming & Shahbaz, Muhammad & Cheng, Shulei & Song, Malin, 2021. "An improved decomposition approach toward energy rebound effects in China: Review since 1992," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    15. Ma, Ding & Fei, Rilong & Yu, Yongsheng, 2019. "How government regulation impacts on energy and CO2 emissions performance in China's mining industry," Resources Policy, Elsevier, vol. 62(C), pages 651-663.
    16. Zhang, Pengpeng & Zhang, Lixiao & Tian, Xin & Hao, Yan & Wang, Changbo, 2018. "Urban energy transition in China: Insights from trends, socioeconomic drivers, and environmental impacts of Beijing," Energy Policy, Elsevier, vol. 117(C), pages 173-183.
    17. 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.
    18. Lei Zhang & Liang Xie & Xianzhong Mu & Guangwen Hu, 2025. "Trade and the Sustainable Energy Transition: Exploring the Impact of Trade on Total Factor Renewable Energy Efficiency," Sustainability, MDPI, vol. 17(4), pages 1-27, February.
    19. Eirini Stergiou & Nikos Rigas & Eftychia Zaroutieri & Konstantinos Kounetas, 2023. "Energy, renewable and technical efficiency convergence: a global evidence," Economic Change and Restructuring, Springer, vol. 56(3), pages 1601-1628, June.
    20. Wei, Yigang & Li, Yan & Wu, Meiyu & Li, Yingbo, 2019. "The decomposition of total-factor CO2 emission efficiency of 97 contracting countries in Paris Agreement," Energy Economics, Elsevier, vol. 78(C), pages 365-378.

    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:gam:jsusta:v:14:y:2022:i:18:p:11250-:d:909811. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.