Work

Can Financial Supply-Side Structural Reform Drive the Low-Carbon Transition of Industrial Energy?

Year: 2025

Type: article

Abstract: Financial supply side structural reform (FSSR) serves as a key for advancing the low-carbon transformation of industrial energy (LTIE) and supporting the dual carbon strategic goals. By using provincial panel data from China for the period of 2008–2022 and leveraging the national financial comprehensive reform pilot zones as a quasi-natural experiment, this study uses the difference-in-differences method to examine empirically the effect of FSSR on the LTIE and the underlying mechanisms. Research findings indicate that, first, FSSR can significantly advance the LTIE, which remained unchanged after other policies, omitted variables, and other potential influencing factors were controlled. Second, the mechanism tests indicate that FSSR can drive the LTIE by increasing green financial support, fostering green industrial development, and promoting green technological innovation. Third, the heterogeneity tests reveal that the benchmark effect is pronounced in regions with weak environmental regulation and a low level of financial development. This study provides theoretical and empirical evidence to understand the crucial role of FSSR in advancing the LTIE and insights for relevant policy formulation.

Source: Energies

DOI: 10.3390/en19010004

Authors: Zicheng Wang, Yilin Ni, Tianchu Feng

Institutions: Zhejiang A & F University, Jiyang College of Zhejiang A&F University

Language: English

Topic: Sustainable Finance and Green Bonds

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Climate action, Affordable and clean energy, Responsible consumption and production, Decent work and economic growth

Open Access status: gold

Estimated APC paid: $3,137