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Impact of green finance on renewable energy development: A spatiotemporal consistency perspective

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  • Tang, Xinmeng
  • Zhou, Xiaoguang

Abstract

The accurate understanding and grasping of green finance's role and effect process would help improve the accuracy of policies and, thereby, the development of renewable energy in China. Based on a newly built structural break modified SPDM (Spatial Panel Dobbin Model), this study explores the spatiotemporal consistency effects of green finance on renewable energy development and their geographical attenuation process. Several results could be obtained: (1) green finance plays an improving role in developing renewable energy in terms of both local and neighboring regions; (2) the effect objective areas of green finance are transferred from local regions to neighboring regions progressively as green finance grows in China, since the effect degree become weaker in local regions but stronger in neighboring regions; (3) the outflow phenomenon of green finance's effect on renewable energy development is stopped and reversed to siphon effect by the public health crisis that happened in 2019; (4) for green finance's spillover effects on renewable energy development, there are apparent geographic attenuation boundaries in areas near 700 km and impacting dense regions in areas near 350 km.

Suggested Citation

  • Tang, Xinmeng & Zhou, Xiaoguang, 2023. "Impact of green finance on renewable energy development: A spatiotemporal consistency perspective," Renewable Energy, Elsevier, vol. 204(C), pages 320-337.
    • Handle: RePEc:eee:renene:v:204:y:2023:i:c:p:320-337
    DOI: 10.1016/j.renene.2023.01.012
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