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The study of the relationship between green finance and resource efficiency in east asian economies

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  • Zhang, Can
  • Zhang, Liangyu
  • Liu, Liyan
  • Du, Chaofei

Abstract

This empirical study, spanning 2000 to 2022 in East Asian economies, employs the Continuously-Updated and Fully Modified approach to explore determinants of fossil fuel utilization efficiency. Findings reveal a positive link between a 1% increase in green finance and a 0.16% enhancement in fossil fuel efficiency, reducing intensity. Conversely, increased inward foreign direct investment (FDI) correlates with reduced efficiency and heightened fossil fuel intensity, emphasizing the need for eco-friendly FDI strategies. A positive connection is identified between a 1% rise in green energy deployment and a 0.26% improvement in fossil fuel efficiency. However, an elevated employment ratio is associated with lower efficiency and higher fossil fuel intensity. To foster a sustainable and energy-efficient future, recommended policies include prioritizing green finance, digitalizing the green financial sector, implementing green FDI reforms, creating green job positions, and enhancing societal awareness in East Asian economies.

Suggested Citation

  • Zhang, Can & Zhang, Liangyu & Liu, Liyan & Du, Chaofei, 2024. "The study of the relationship between green finance and resource efficiency in east asian economies," Resources Policy, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:jrpoli:v:89:y:2024:i:c:s0301420724000254
    DOI: 10.1016/j.resourpol.2024.104658
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    More about this item

    Keywords

    Fossil fuels efficiency; Green finance; Sustainable economic recovery; East asia; Panel data;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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