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Green finance, renewable energy development, and climate change: evidence from regions of China

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  • Yunpeng Sun

    (Tianjin University of Commerce)

  • Qun Bao

    (Nankai University)

  • Farhad Taghizadeh-Hesary

    (Tokai University)

Abstract

In this study, using data from 2010 to 2021, and by utilizing the stochastic impacts by regression on population, affluence, and technology (STIRPAT) theory, and system generalized method of moments, the effect of green financing and deployment of renewable energy on carbon dioxide emissions in China and its provinces were analyzed. The results show that green financing reduces environmental pollution at the country level. Moreover, with a 1% increase in renewable energy consumption, carbon dioxide emission can be expected to decrease by 0.103%. It also demonstrates that green financing has a statistically significant coefficient only in provinces located in the eastern and western regions. Chinese policymakers should incentive policies for provinces in the eastern region of China in order to have a cleaner environment. The central region should be under supportive and pressure policies to move faster along the path to sustainable development.

Suggested Citation

  • Yunpeng Sun & Qun Bao & Farhad Taghizadeh-Hesary, 2023. "Green finance, renewable energy development, and climate change: evidence from regions of China," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-8, December.
    • Handle: RePEc:pal:palcom:v:10:y:2023:i:1:d:10.1057_s41599-023-01595-0
    DOI: 10.1057/s41599-023-01595-0
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    3. Andrea C. Rangel Guevara, 2024. "Identifying the losers in the transport transition: evidence from Germany," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-18, December.
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    5. Ma, Rui & Xie, Xiao qin & Liu, Bin & Zhou, Fengjiao & Samsurijan, Mohamad Shaharudin bin, 2023. "Transmission to green economic development and the dependence on natural resources in China," Resources Policy, Elsevier, vol. 86(PB).
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    7. Yang, Xiangqing & Long, Laishou, 2024. "Renewable energy transition and its implication on natural resource management for green and sustainable economic recovery," Resources Policy, Elsevier, vol. 89(C).
    8. Uche, Emmanuel & Ngepah, Nicholas & Cifuentes-Faura, Javier, 2023. "Upholding the green agenda of COP27 through publicly funded R&D on energy efficiencies, renewables, nuclear and power storage technologies," Technology in Society, Elsevier, vol. 75(C).
    9. Rao, Amar & Kumar, Satish & Karim, Sitara, 2024. "Accelerating renewables: Unveiling the role of green energy markets," Applied Energy, Elsevier, vol. 366(C).
    10. Xuelian Li & Tinghui Lu & Jyh-Horng Lin & Ching-Hui Chang, 2024. "Insurer green financing for a supply chain under cap-and-trade regulation: a capped call contingent claim analysis," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.
    11. Wang, Yang & Taghizadeh-Hesary, Farhad, 2023. "Green bonds markets and renewable energy development: Policy integration for achieving carbon neutrality," Energy Economics, Elsevier, vol. 123(C).
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