Climate policy uncertainty and green total factor energy efficiency: Does the green finance matter?

Jie Han, Wei Zhang, Xuemeng Liu, Anas Muhammad, Zhenjie Li and Cem Işık

International Review of Financial Analysis, 2025, vol. 104, issue PA

Abstract: This study investigates the impact of climate policy uncertainty (CPU) on green total factor energy efficiency (GTFEE) and examines the moderating role of green finance (GF). Using a panel data analysis framework combined with the super-efficient SBM-DEA model, the study finds that CPU has a significant negative effect on GTFEE, indicating that increased policy uncertainty hinders the improvement of urban energy efficiency. At the same time, GF plays an important moderating role in alleviating the negative impacts of CPU, particularly in environments with higher policy uncertainty, where GF can effectively promote energy efficiency. Additionally, the study discovers that the development of artificial intelligence (AI) industries significantly moderates the relationship between GF and GTFEE. In cities with more advanced AI technologies, AI helps boost energy efficiency. Overall, the findings offer important policy recommendations on how to improve energy efficiency through green finance in uncertain policy environments, with broad applicability, especially in advancing low-carbon economies.

Keywords: Climate policy uncertainty; Green finance; Artificial intelligence industry; Green total factor energy efficiency (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1057521925003801
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:104:y:2025:i:pa:s1057521925003801

DOI: 10.1016/j.irfa.2025.104293

Access Statistics for this article

International Review of Financial Analysis is currently edited by B.M. Lucey

More articles in International Review of Financial Analysis from Elsevier
Bibliographic data for series maintained by Catherine Liu ().