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Tackling Carbon Intensity With Green Finance In The Covid-19-Era: Recommendations For Oecd Economies

Author

Listed:
  • LIJING LU

    (Hebei University of Economics and Business, Shijiazhuang 050067, P. R. China)

  • HAIYANG ZHENG

    (��HSBC Business School, Peking University, Shenzhen 100871, P. R. China)

  • MEILAN CHEN

    (��Guangdong University of Finance & Economics, Guangzhou 510320, P. R. China)

  • HINA NAJAM

    (�School of Business Administration, Iqra University, Islamabad, Pakistan)

Abstract

Green financing has been examined in the literature. However, its impact on carbon intensity has not been fully investigated. This research sets out to fill this gap by using the dimensions of green loans, securities, insurance, and investment. In exploring the connections between green financing, nonfossil energy use, and carbon intensity, we utilized data from 2016 to 2020 to run an advanced quantile modeling. We applied the decision-making unit-method of data envelopment analysis for analyses. Our main findings are as follows. Rapid advances in the green finance sector in Organisation for Economic Co-operation and Development countries were coupled with an increase in nonfossil energy usage, resulting in a decline in carbon intensity. When the growth in nonfossil energy consumption was reduced, green investment was put on hold, and the green financing industry would be negatively impacted. The role of green financing and carbon intensity in nonfossil energy use is coupled with strong government policy interventions. Nonetheless, the effects of green finance initiatives often lag. Moreover, these effects are inconsistent. This research suggests new methods to increase the use of nonfossil energy, build a carbon trading market, and increase the consumption of green financing policies post COVID-19.

Suggested Citation

  • Lijing Lu & Haiyang Zheng & Meilan Chen & Hina Najam, 2022. "Tackling Carbon Intensity With Green Finance In The Covid-19-Era: Recommendations For Oecd Economies," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 13(03), pages 1-22, August.
    • Handle: RePEc:wsi:ccexxx:v:13:y:2022:i:03:n:s2010007822400140
    DOI: 10.1142/S2010007822400140
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    Citations

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    Cited by:

    1. Najam, Hina & Abbas, Jawad & Álvarez-Otero, Susana & Dogan, Eyup & Sial, Muhammad Safdar, 2022. "Towards green recovery: Can banks achieve financial sustainability through income diversification in ASEAN countries?," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 522-533.
    2. Samira Ben Belgacem & Ghousia Khatoon & Abad Alzuman, 2023. "Role of Renewable Energy and Financial Innovation in Environmental Protection: Empirical Evidence from UAE and Saudi Arabia," Sustainability, MDPI, vol. 15(11), pages 1-11, May.
    3. Abbas, Jawad & Wang, Lisu & Ben Belgacem, Samira & Pawar, Puja Sunil & Najam, Hina & Abbas, Jaffar, 2023. "Investment in renewable energy and electricity output: Role of green finance, environmental tax, and geopolitical risk: Empirical evidence from China," Energy, Elsevier, vol. 269(C).
    4. Yaqing Han & Qiangqiang Wang & Yushui Li, 2023. "Does Financial Resource Misallocation Inhibit the Improvement of Green Development Efficiency? Evidence from China," Sustainability, MDPI, vol. 15(5), pages 1-21, March.
    5. Zhikang Xie & Xinglin Liu & Hina Najam & Qinghua Fu & Jawad Abbas & Ubaldo Comite & Laura Mariana Cismas & Andra Miculescu, 2022. "Achieving Financial Sustainability through Revenue Diversification: A Green Pathway for Financial Institutions in Asia," Sustainability, MDPI, vol. 14(6), pages 1-16, March.

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