The Promoting Effect of Green Bonds on Reducing Carbon Emission Intensity Through Energy Structure Transition

Yulei Zhang, Tao Xu () and Songqiang Wu
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Yulei Zhang: School of Economics and Management, Nanjing Tech University, No. 30 South Puzhu Road, Nanjing 211816, China
Tao Xu: School of Economics and Management, Nanjing Tech University, No. 30 South Puzhu Road, Nanjing 211816, China
Songqiang Wu: School of Economics and Management, Nanjing Tech University, No. 30 South Puzhu Road, Nanjing 211816, China

Sustainability, 2024, vol. 16, issue 21, 1-18

Abstract: Climate change poses a significant threat to the sustainable development of all countries. The transition to low-carbon energy sources is a crucial strategy for reducing carbon emissions and mitigating climate change. We investigate the mediating role of clean energy consumption (EC) and fossil energy supply (ES) on the promoting of carbon emission intensity per unit of GDP (CO 2 /GDP) reduction by green bonds (GBs). We develop a mediating model to analyze how GB influences CO 2 /GDP reduction through EC and ES, utilizing panel data from 13 prefecture-level cities in Jiangsu province spanning the years 2007 to 2021. Additionally, we assess the model’s reliability through endogeneity and robustness tests. We find that GBs contribute to reducing CO 2 /GDP by facilitating the structural transition of energy supply and consumption. Furthermore, the development of GBs enhance the consumption of clean energy and plays a direct role in advancing the transition in structure of both energy supply and energy consumption. Notably, we observe heterogeneity in the effectiveness of GBs on CO 2 /GDP reduction across different regions. Therefore, it is imperative for the government to actively promote the development of GBs to achieve sustainable economic growth. Furthermore, both financial and energy policies should be tailored to align with the specific energy structures of various regions.

Keywords: green bonds; energy supply; energy consumption; low-carbon transition; empirical analysis (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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