Ziyuan Kexue (Apr 2023)
The impact of green credit on the development of renewable energy: Theoretical analysis and empirical interpretation
Abstract
[Objective] Renewable energy is the key driving force of the green and low-carbon transformation of the energy sector, and it is also an important support for the sustainable development of China’s economy. This study aimed to explore the impact of green credit on renewable energy development from the theoretical and empirical perspectives. [Methods] Based on the panel data of 30 provinces (autonomous regions, municipalities) in China from 2005 to 2019, this study systematically analyzed the relationship between green credit and renewable energy by using the two-way fixed effect model. [Results] (1) On the whole, green credit can significantly promote the development of renewable energy, and the results of fractal analysis show that green credit can effectively promote the development of hydropower, nuclear energy, and wind power generation. (2) The result of analysis using the generalized difference-in-differences (DID) model shows that the promulgation of the Green Credit Guidelines in 2012 has effectively driven the development of renewable energy. (3) The mechanism test results show that green credit can play a role in the development of renewable energy by promoting the upgrading of industrial structure and stimulating green technological innovation. (4) The heterogeneity test results show that the impact of green credit on the development of renewable energy was more significant in regions with highly developed financial services and areas with high degree of marketization. [Conclusion] Green credit can significantly promote the development of renewable energy by promoting the upgrading of industrial structure and encouraging green technological innovation, and the policy of Green Credit Guidelines played a key role in this development.
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