Study on the influence of green finance development on industrial energy consumption

ABSTRACT

During high-quality economic development, reducing energy intensity is a key step towards reducing environmental pressures. Considering that the industrial sector is the main energy-consuming sector, green finance can complement traditional environmental regulation while allocating financial resources. Therefore, this research paper aims to investigate the connection between the development of green finance and the intensity of industrial energy consumption. To accomplish this, a dynamic spatial Durbin model is constructed using panel data from 30 regions in China spanning the period from 2006 to 2019. Research revealed that: China’s industrial energy consumption intensity has a significant time lag and spatial lag. Industrial energy intensity is influenced by the spatial distribution of green finance, which in turn has a negative effect on the growth of industrial energy intensity. This means that as green finance develops in the surrounding area, it also decreases the energy consumption intensity within local industries.

KEYWORDS:

• Green finance
• industrial energy consumption intensity
• entropy method
• dynamic spatial Durbin model

JEL CLASSIFICATION:

• Q50
• A12

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

This research did not receive any specific grant from funding agencies in the public, commercial, or not-for-profit sectors.