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How does digital finance affect energy consumption in China? Empirical evidence from China

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Listed:
  • Shuhao Zhang

    (Wuhan University of Technology)

  • Xuetong Li

    (Wuhan University of Technology)

  • Daqian Shi

    (Wuhan University of Technology)

Abstract

The integration of energy finance is an emerging trend in international financial development, which is an inevitable product of the integration of energy and economy. Exploring the relationship between digital finance (DF) and energy consumption is of particular significance for achieving sustainable development of the energy economy. This paper uses a fixed-effects model to analyze Chinese provincial panel data from 2011 to 2020 to explore the ways in which DF affects energy consumption. The analysis shows an inverted U-shaped relationship between DF and energy consumption. Different aspects of DF have varying effects on energy consumption. There is regional diversity in the influence of DF on energy. Economic growth plays a crucial intermediary role in the impact of DF on energy usage. Our research supports the implementation of government policies aimed at advancing DF for environmental conservation purposes.

Suggested Citation

  • Shuhao Zhang & Xuetong Li & Daqian Shi, 2025. "How does digital finance affect energy consumption in China? Empirical evidence from China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(5), pages 10719-10735, May.
    • Handle: RePEc:spr:endesu:v:27:y:2025:i:5:d:10.1007_s10668-023-04329-z
    DOI: 10.1007/s10668-023-04329-z
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    1. Agnoung Amang, Raïssa Elodie & Keneck-Massil, Joseph & Tadadjeu, Sosson, 2025. "Does state capacity influence energy poverty in developing countries?," Energy, Elsevier, vol. 322(C).

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