Unconventional, conventional monetary policies, and optimal energy supply structure in China

Yi Jin, Shuo Wang, Lin Bu and Pengxiang Zhai

Finance Research Letters, 2023, vol. 54, issue C

Abstract: This work quantifies the macroeconomic effects of an unconventional monetary policy–targeted refinancing, and a conventional monetary policy–general refinancing on the optimization of the energy supply structure using a dynamic stochastic general equilibrium model. The results show that targeted refinancing exclusively increases bank loans to the green energy sector with lower interest rates, which promotes the energy transition. In contrast, with general refinancing, fossil energy loans increase significantly, leading to higher outputs, while green sector outputs are negatively impacted. Our findings provide novel evidence of the differential effects of unconventional and conventional monetary policies on the energy supply structure.

Keywords: Targeted refinancing; General refinancing; Energy supply structure; DSGE (search for similar items in EconPapers)
JEL-codes: E52 E58 Q41 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:54:y:2023:i:c:s1544612323001058

DOI: 10.1016/j.frl.2023.103732

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