The role of green finance in reshaping end-use energy consumption: insights from regional evidence in China
IntroductionGreen finance plays a pivotal role in the transition to a low-carbon economy by influencing energy consumption patterns. Despite growing interest in this area, the relationship between green finance and the optimization of end-use energy consumption remains underexplored, particularly in...
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Frontiers Media S.A.
2025-02-01
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| Series: | Frontiers in Environmental Science |
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| Online Access: | https://www.frontiersin.org/articles/10.3389/fenvs.2025.1539987/full |
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| author | Mingzheng Deng Xiangyi Lu Ruibin Tong Yan Xue Shuaihang Shi Rui Guo |
| author_facet | Mingzheng Deng Xiangyi Lu Ruibin Tong Yan Xue Shuaihang Shi Rui Guo |
| author_sort | Mingzheng Deng |
| collection | DOAJ |
| description | IntroductionGreen finance plays a pivotal role in the transition to a low-carbon economy by influencing energy consumption patterns. Despite growing interest in this area, the relationship between green finance and the optimization of end-use energy consumption remains underexplored, particularly in the context of regional disparities.MethodsThis study investigates the impact of green finance on end-use energy consumption structure across 30 provinces in China from 2014 to 2021. A system Generalized Method of Moments (GMM) model and a panel threshold model are employed to analyze the relationship, incorporating nonlinearities and regional heterogeneities.ResultsThe findings indicate that green finance significantly reduces reliance on high-carbon energy sources and fosters cleaner energy consumption, particularly in provinces with advanced green financial systems. The effects are nonlinear, becoming evident only after green finance surpasses a certain threshold. Stronger impacts are observed in eastern regions due to mature financial infrastructures, whereas central and western regions experience comparatively weaker outcomes.DiscussionContrary to expectations, mediating factors such as industrial structure, energy efficiency, and green innovation have limited explanatory power for the observed impacts. These results highlight the need for tailored green financial policies and enhanced regional support mechanisms to accelerate sustainable energy transitions. This research underscores the transformative potential of green finance in energy governance and its contribution to achieving sustainable development goals. |
| format | Article |
| id | doaj-art-e1236b010c624784a543df19b79a4ec0 |
| institution | Kabale University |
| issn | 2296-665X |
| language | English |
| publishDate | 2025-02-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Environmental Science |
| spelling | doaj-art-e1236b010c624784a543df19b79a4ec02025-02-04T06:31:40ZengFrontiers Media S.A.Frontiers in Environmental Science2296-665X2025-02-011310.3389/fenvs.2025.15399871539987The role of green finance in reshaping end-use energy consumption: insights from regional evidence in ChinaMingzheng Deng0Xiangyi Lu1Ruibin Tong2Yan Xue3Shuaihang Shi4Rui Guo5School of Economics and Management, China University of Geosciences (Beijing), Beijing, ChinaSchool of Economics and Management, China University of Geosciences (Wuhan), Wuhan, Hubei, ChinaHenley Business School, University of Reading, Reading, United KingdomSchool of Economics, Tianjin University of Commerce, Tianjin, ChinaSchool of Energy, China University of Geosciences (Beijing), Beijing, ChinaSchool of Management, Rennes School of Business, Rennes, FranceIntroductionGreen finance plays a pivotal role in the transition to a low-carbon economy by influencing energy consumption patterns. Despite growing interest in this area, the relationship between green finance and the optimization of end-use energy consumption remains underexplored, particularly in the context of regional disparities.MethodsThis study investigates the impact of green finance on end-use energy consumption structure across 30 provinces in China from 2014 to 2021. A system Generalized Method of Moments (GMM) model and a panel threshold model are employed to analyze the relationship, incorporating nonlinearities and regional heterogeneities.ResultsThe findings indicate that green finance significantly reduces reliance on high-carbon energy sources and fosters cleaner energy consumption, particularly in provinces with advanced green financial systems. The effects are nonlinear, becoming evident only after green finance surpasses a certain threshold. Stronger impacts are observed in eastern regions due to mature financial infrastructures, whereas central and western regions experience comparatively weaker outcomes.DiscussionContrary to expectations, mediating factors such as industrial structure, energy efficiency, and green innovation have limited explanatory power for the observed impacts. These results highlight the need for tailored green financial policies and enhanced regional support mechanisms to accelerate sustainable energy transitions. This research underscores the transformative potential of green finance in energy governance and its contribution to achieving sustainable development goals.https://www.frontiersin.org/articles/10.3389/fenvs.2025.1539987/fullgreen financeend-use energy consumption structuresustainable energy transitionGMM modelthreshold effects |
| spellingShingle | Mingzheng Deng Xiangyi Lu Ruibin Tong Yan Xue Shuaihang Shi Rui Guo The role of green finance in reshaping end-use energy consumption: insights from regional evidence in China Frontiers in Environmental Science green finance end-use energy consumption structure sustainable energy transition GMM model threshold effects |
| title | The role of green finance in reshaping end-use energy consumption: insights from regional evidence in China |
| title_full | The role of green finance in reshaping end-use energy consumption: insights from regional evidence in China |
| title_fullStr | The role of green finance in reshaping end-use energy consumption: insights from regional evidence in China |
| title_full_unstemmed | The role of green finance in reshaping end-use energy consumption: insights from regional evidence in China |
| title_short | The role of green finance in reshaping end-use energy consumption: insights from regional evidence in China |
| title_sort | role of green finance in reshaping end use energy consumption insights from regional evidence in china |
| topic | green finance end-use energy consumption structure sustainable energy transition GMM model threshold effects |
| url | https://www.frontiersin.org/articles/10.3389/fenvs.2025.1539987/full |
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