Energy-environmental efficiency enhancement using green finance through spatio-temporal heterogeneity and dynamic regulatory mechanisms: Multiple perspectives study

Jinyue Zhang and Zhenglin Sun

Renewable Energy, 2025, vol. 240, issue C

Abstract: In contrast to the extant literature, this paper innovatively classifies energy-environmental efficiency into comprehensive and pure forms. Based on the panel data of 284 prefectural-level cities in China spanning from 2007 to 2020, it proceeds to explore the spatial spillover effect of green finance on energy-environmental efficiency as well as its influence mechanism. The study reveals that: (1) Green finance makes a significant contribution to energy-environmental efficiency, manifesting in both its comprehensive and pure forms. Notably, green finance exerts a more pronounced impact on the enhancement of pure energy-environmental efficiency, which is 5.5 times higher than that of the comprehensive energy-environmental efficiency. (2) The development of green finance has a significant positive spatial spillover effect on both the comprehensive energy-environmental efficiency and the pure energy-environmental efficiency. (3) Environmental regulation has an inverted U-shaped moderating effect on the interaction between green finance and energy-environmental efficiency. (4) An increased financial development level enables green finance to significantly enhance energy-environmental efficiency after crossing a single threshold. (5) The green finance reform and innovation pilot zone policy improves the energy-environmental efficiency of both local and neighboring areas, demonstrating a significant positive spatial spillover effect. This positive spatial spillover effect is more pronounced in cities in the eastern region and resource-based cities. The conclusions of this study provide a scientific decision-making basis for optimizing financial services in China's green energy and low-carbon transition.

Keywords: Green finance; Energy-environmental efficiency; Spatial spillover effect; Heterogeneity; Policy effect; Dynamic regulatory mechanism (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:240:y:2025:i:c:s0960148124022808

DOI: 10.1016/j.renene.2024.122212

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