Work

More green digital finance with less energy poverty? The key role of climate risk

Year: 2024

Type: article

Abstract: The emerging field of green digital finance (GDF) holds promise for alleviating energy poverty (EP); however, its potential remains underexplored. Constructing a multidimensional index of GDF, this study investigates whether and how GDF development contributes to EP mitigation. Employing provincial-level panel data from China, our findings indicate that GDF development significantly reduces EP, and enhancing energy efficiency and deepening digitalization are potential mechanisms in this process. Moreover, climate risk demonstrates moderating/threshold effects, with an unfavorable role in addressing EP. Specifically, GDF exhibits a propensity to decrease EP at lower levels of climate risk, with the opposite effect observed at higher levels of risk. These findings offer essential guidance for policymakers to alleviate EP and promote sustainable development .

Source: Energy Economics

DOI: 10.1016/j.eneco.2024.108144

Authors: Chi-Chuan Lee, Mingyue Li, Xinghao Li, Hepeng Song

Institutions: Southwestern University of Finance and Economics, Shanghai Jiao Tong University

Language: English

Topic: Sustainable Finance and Green Bonds

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences