How does digital finance affect energy consumption in China? Empirical evidence from China

Shuhao Zhang, Xuetong Li and Daqian Shi ()
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Shuhao Zhang: Wuhan University of Technology
Xuetong Li: Wuhan University of Technology
Daqian Shi: Wuhan University of Technology

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2025, vol. 27, issue 5, No 36, 10719-10735

Abstract: Abstract The integration of energy finance is an emerging trend in international financial development, which is an inevitable product of the integration of energy and economy. Exploring the relationship between digital finance (DF) and energy consumption is of particular significance for achieving sustainable development of the energy economy. This paper uses a fixed-effects model to analyze Chinese provincial panel data from 2011 to 2020 to explore the ways in which DF affects energy consumption. The analysis shows an inverted U-shaped relationship between DF and energy consumption. Different aspects of DF have varying effects on energy consumption. There is regional diversity in the influence of DF on energy. Economic growth plays a crucial intermediary role in the impact of DF on energy usage. Our research supports the implementation of government policies aimed at advancing DF for environmental conservation purposes.

Keywords: Digital finance; Energy consumption; Nonlinearity; Fixed effect model (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10668-023-04329-z

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