How does digital finance drive energy transition? A green investment-based perspective

Boqiang Lin () and Yongjing Xie ()
Additional contact information
Yongjing Xie: Xiamen University

Financial Innovation, 2025, vol. 11, issue 1, 1-23

Abstract: Abstract Green investments (GIs) in the energy industry are crucial for driving a clean energy transition and fostering environmental sustainability. In the digital economy era, insufficient attention has been paid to digital finance’s (DF’s) influence on GIs in energy enterprises, potentially underestimating its impact. Our study utilized a two-way fixed-effects model, analyzing data from 108 listed energy firms from 2011 to 2020, to empirically investigate the influence of DF on GIs in China’s energy industry. The research findings are as follows: (1) An increase of one unit in DF can improve the intensity of GIs in the energy industry by 0.03% by alleviating financing constraints, increasing cash flow, and correcting financial mismatches. (2) DF has a significant threshold effect on GIs, with market incentive- and command-and-control-based environmental regulations having thresholds of 16.98 and 0.98, respectively. (3) The GI performance of large state-owned energy enterprises in regions with a higher marketization benefits more from DF. We suggested tailored policy suggestions according to these findings.

Keywords: Digital finance; Energy transition; Green investments; Environmental regulations; Threshold effect (search for similar items in EconPapers)
JEL-codes: G23 Q30 Q56 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1186/s40854-025-00772-1 Abstract (text/html)

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:spr:fininn:v:11:y:2025:i:1:d:10.1186_s40854-025-00772-1

Ordering information: This journal article can be ordered from
http://www.springer. ... nomics/journal/40589

DOI: 10.1186/s40854-025-00772-1

Access Statistics for this article

Financial Innovation is currently edited by J. Leon Zhao and Zongyi

More articles in Financial Innovation from Springer, Southwestern University of Finance and Economics
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().