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Impact of Digital Finance on Energy Efficiency in the Context of Green Sustainable Development

Author

Listed:
  • Chengying Yang

    (School of Management, Universiti Sains Malaysia (USM), Penang 11800, Malaysia)

  • Tajul Ariffin Masron

    (School of Management, Universiti Sains Malaysia (USM), Penang 11800, Malaysia)

Abstract

Limited by ecological conditions, in order to improve the innovation efficiency concerning energy, a change from “extensive” to “green” is required. The development of sustainable technology is the most important productive force. Economic development is centered on finance. Only by mutual penetration and interaction can China’s energy innovation be effectively promoted. “Green GDP (Gross Domestic Product)” is the main direction of China’s current economic development. A sustainable green digital economy is the primary condition for promoting energy efficiency, and it is the key to improving energy efficiency in China to achieve a green transition. Green finance for sustainable development refers to economic finance centered on energy conservation, environmental protection and technological innovation. Attention is constantly paid to the financial industry in China, and we are trying to combine the concept of environmental protection with financial development to promote the continuous development of China’s environmental protection economy. A company’s economic and environmental benefits will be improved from the point of view of improving resource conservation and reducing the environmental impact of equipment and processes. To achieve this goal, the “efficiency effect” of the financial system needs to be fully exploited to maximize energy efficiency. An empirical study about the relationship of financial performance and energy efficiency in the green sector is carried out while considering the environmental constraints. The results show that the expansion of the financial scale and the adjustment of the financial structure have increased the energy utilization efficiency by more than 15% from the past to the present and reduced the pollution of the ecological environment by more than 10% nationwide, realizing the effective allocation of resources. Digital finance is a new generation of financial services that combines the Internet and information technology with traditional financial service formats. Including Internet payment, mobile payment, online banking, financial service outsourcing and online loans, online insurance, online funds and other financial services. Therefore, the sustainable development of all aspects of finance has a huge catalytic effect on the doubling of energy utilization efficiency.

Suggested Citation

  • Chengying Yang & Tajul Ariffin Masron, 2022. "Impact of Digital Finance on Energy Efficiency in the Context of Green Sustainable Development," Sustainability, MDPI, vol. 14(18), pages 1-17, September.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:18:p:11250-:d:909811
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    References listed on IDEAS

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    1. Libo Li & Wenbing Wu & Mingyu Zhang & Lu Lin, 2021. "Linkage Analysis between Finance and Environmental Protection Sectors in China: An Approach to Evaluating Green Finance," IJERPH, MDPI, vol. 18(5), pages 1-16, March.
    2. Chen, Weidong & Geng, Wenxin, 2017. "Fossil energy saving and CO2 emissions reduction performance, and dynamic change in performance considering renewable energy input," Energy, Elsevier, vol. 120(C), pages 283-292.
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    Citations

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    Cited by:

    1. Lihui Li & Huimin Wang, 2023. "Influence of Green Investment on China’s Sustainable Development," Sustainability, MDPI, vol. 15(12), pages 1-19, June.
    2. Muhammad Naveed Jamil & Dr. Abdul Rasheed, 2023. "Role Of External Finance And Innovation In Achieving Eco-Efficiency And Sustainable Development Goals," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(2), pages 339-355.
    3. Yuxin Ning & Yihan Zhang, 2023. "Does Digital Finance Improve Corporate ESG Performance? An Intermediary Role Based on Financing Constraints," Sustainability, MDPI, vol. 15(13), pages 1-17, July.
    4. Yi Yang & Shuhe Shi & Jingjing Wu, 2022. "Digital Financial Inclusion to Corporation Value: The Mediating Effect of Ambidextrous Innovation," Sustainability, MDPI, vol. 14(24), pages 1-23, December.
    5. Tomasz Neumann, 2023. "Efficient Use of Low-Emission Power Supply for Means of Transport," Energies, MDPI, vol. 16(8), pages 1-14, April.
    6. Muhammad Mushafiq & Muzammil Muhammad Khan Arisar & Hanan Tariq & Stanislaw Czapp, 2023. "Energy Efficiency and Economic Policy: Comprehensive Theoretical, Empirical, and Policy Review," Energies, MDPI, vol. 16(5), pages 1-22, March.
    7. Bie, Fan & Zhou, Luyao & Liu, Shuo & Yang, Tao, 2024. "Government digital transformation, resource curse and green total factor energy efficiency in Chinese cities," Resources Policy, Elsevier, vol. 92(C).

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