IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-04274754.html

The role of green financing in facilitating renewable energy transition in China: Perspectives from energy governance, environmental regulation, and market reforms

Author

Listed:
  • Juntao Du

    (School of Statistics and Applied Mathematics, Anhui University of Finance & Economics, Bengbu)

  • Zhiyang Shen

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - ULCO - Université du Littoral Côte d'Opale - Université de Lille - CNRS - Centre National de la Recherche Scientifique, IÉSEG School Of Management [Puteaux])

  • Malin Song

    (School of Accounting, Anhui University of Finance and Economics, Bengbu)

  • Michael Vardanyan

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - ULCO - Université du Littoral Côte d'Opale - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

Abstract

Green financing plays an important role in providing adequate support for environmentally sustainable projects aimed at reducing China's reliance on fossil fuels. At the same time, targeted government policies can facilitate green financial development, helping promote renewable energy transition. We add to the debate on the link between green finance and clean energy consumption as well as explore the exact transmission mechanisms underlying this nexus. Our empirical illustration is based on a generalized method of moments (GMM) specification of a panel threshold regression model and a sample of 30 Chinese provinces from 2001 to 2019. We find that green financing initiatives have helped accelerate the transformation of China's energy industry by promoting an increase in the share of renewable energy in its overall fuel mix, especially in regions with relatively well-functioning markets. Several robustness tests confirm the existence of this relationship. Moreover, our results suggest that improved energy efficiency governance and environmental regulation positively moderate the impact of green finance on clean energy transition. Our study provides policymakers with insights on how improved governance, environmental protection initiatives, and market reforms can foster the development of China's green financial market and help reduce its current dependence on dirty energy.

Suggested Citation

  • Juntao Du & Zhiyang Shen & Malin Song & Michael Vardanyan, 2023. "The role of green financing in facilitating renewable energy transition in China: Perspectives from energy governance, environmental regulation, and market reforms," Post-Print hal-04274754, HAL.
    • Handle: RePEc:hal:journl:hal-04274754
    DOI: 10.1016/j.eneco.2023.106595
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    Other versions of this item:

    More about this item

    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:hal:journl:hal-04274754. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.