Green finance as a catalyst for energy transition: Green total factor productivity and digital economy

Ting Xu, Siyuan Xuan and Xiaoqin Xuan

International Review of Financial Analysis, 2025, vol. 107, issue C

Abstract: Green finance plays a crucial role in driving energy transition, promoting sustainable development, and enhancing urban energy efficiency. This study analyzes data from Chinese prefecture-level cities between 2010 and 2021 to assess the impact of green finance on urban energy consumption. The results indicate that green finance significantly reduces urban energy consumption. Mechanism analysis shows that improvements in green total factor productivity and advancements in the digital economy further amplify the positive effects of green finance. Moreover, heterogeneity analysis reveals that the impact of green finance on energy transition is more pronounced in southern cities, the Yangtze River Economic Belt, and smaller to medium-sized cities. This study not only provides empirical evidence for understanding how green finance promotes energy efficiency through enhanced green total factor productivity and digital economy development but also offers valuable insights for formulating sustainable development policies that support energy transition.

Keywords: Green finance; Energy transition; Green total factor productivity; Digital transformation; Sustainable urban development (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1057521925007343
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:107:y:2025:i:c:s1057521925007343

DOI: 10.1016/j.irfa.2025.104647

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 ().