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Can financial inclusion facilitate carbon neutrality in China? The role of energy efficiency

Jiajia Dong, Yue Dou, Qingzhe Jiang and Jun Zhao

Energy, 2022, vol. 251, issue C

Abstract: With the vigorous popularization of inclusive finance, its carbon emission-reduction effect deserves great attention. For this purpose, we check the spatial effect of financial inclusion on carbon dioxide (CO2) emissions by building a composite index of financial inclusion. After conducting a series of robust tests, we also examine how energy efficiency adjusts and affects the financial inclusion-CO2 nexus. The primary findings highlight that: (i) China's financial inclusion is positively correlated with the greenhouse effect; in other words, increased inclusive finance cannot facilitate carbon emission reduction; (ii) the interaction and synergy between energy efficiency and financial inclusion can effectively weaken the promotion effect of financial inclusion on carbon emissions and enhance the reduction effect of energy efficiency; and (3) in addition to the direct effect, China's financial inclusion can also facilitate greenhouse effect by impeding the innovation of energy technologies. Following the three results, we propose the corresponding policy implications.

Keywords: Financial inclusion; CO2 emissions; Moderating and mediating effects; Energy efficiency; China (search for similar items in EconPapers)
JEL-codes: C33 G21 Q54 Q55 (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1016/

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