How does green finance derive the resource efficiency and decarbonization of the economy?

Xiang Yan, Chao Yang and Renfang Zhang

Resources Policy, 2023, vol. 85, issue PB

Abstract: This study assesses the impact of green finance on resource efficiency and decarbonization based on the 30 provincial data of China from 2008 to 2018. The quantile and difference-in-differences (DID) models were employed. The empirical results show that green financing could lessen carbon intensity by enhancing resource efficiency. The benchmark findings demonstrate how green financing may directly promote decarbonization. The precondition for this impact includes high levels of transparency, state assistance, human capital development, and urbanization. Green investment is more successful at supporting decarbonization in provinces with higher carbon intensity. Green financing encourages economic growth, resource efficiency, technological advancement, and the transition to renewable energy sources, contributing to carbon emission reductions. The study provides practical policy recommendations for China and other developing and emerging economies to foster the decarbonization and resource efficiency process.

Keywords: Green finance; Decarbonization; Resource efficiency; Green growth (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:85:y:2023:i:pb:s0301420723006451

DOI: 10.1016/j.resourpol.2023.103934

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