TACKLING CARBON INTENSITY WITH GREEN FINANCE IN THE COVID-19-ERA: RECOMMENDATIONS FOR OECD ECONOMIES

Lijing Lu (), Haiyang Zheng (), Meilan Chen and Hina Najam ()
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Lijing Lu: Hebei University of Economics and Business, Shijiazhuang 050067, P. R. China
Haiyang Zheng: ��HSBC Business School, Peking University, Shenzhen 100871, P. R. China
Meilan Chen: ��Guangdong University of Finance & Economics, Guangzhou 510320, P. R. China
Hina Najam: �School of Business Administration, Iqra University, Islamabad, Pakistan

Climate Change Economics (CCE), 2022, vol. 13, issue 03, 1-22

Abstract: Green financing has been examined in the literature. However, its impact on carbon intensity has not been fully investigated. This research sets out to fill this gap by using the dimensions of green loans, securities, insurance, and investment. In exploring the connections between green financing, nonfossil energy use, and carbon intensity, we utilized data from 2016 to 2020 to run an advanced quantile modeling. We applied the decision-making unit-method of data envelopment analysis for analyses. Our main findings are as follows. Rapid advances in the green finance sector in Organisation for Economic Co-operation and Development countries were coupled with an increase in nonfossil energy usage, resulting in a decline in carbon intensity. When the growth in nonfossil energy consumption was reduced, green investment was put on hold, and the green financing industry would be negatively impacted. The role of green financing and carbon intensity in nonfossil energy use is coupled with strong government policy interventions. Nonetheless, the effects of green finance initiatives often lag. Moreover, these effects are inconsistent. This research suggests new methods to increase the use of nonfossil energy, build a carbon trading market, and increase the consumption of green financing policies post COVID-19.

Keywords: Green financing; COVID-19; carbon intensity; quantile modeling; OECD countries (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (8)

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DOI: 10.1142/S2010007822400140

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