Coupling and coordinated development of green finance and renewable energy industry in China: Spatiotemporal differentiation and driving factors

Abstract

The coordinated development of green finance (GF) and the renewable energy industry (REI) is crucial for accelerating energy transition and mitigating climate change. However, the existing literature has overlooked the bidirectional relationship between GF and REI. Using provincial data from 2007 to 2019, this study investigates the coupling coordination degree of GF and REI (GRCC) and its spatiotemporal distribution characteristics and driving factors. The findings indicate that both GF and REI experienced stable growth during the study period, but REI lagged behind GF, and their spatial distribution displayed asymmetrical characteristics. Although GRCC exhibited a stable growth trend and slight coordination at both national and regional levels, it displayed large interprovincial differences and spatial agglomeration characteristics. Notably, high GRCC values were primarily concentrated in a few provinces in southwest and south-central regions, spreading to the east. Furthermore, financial development, renewable energy endowment, economy scale, technological innovation, environmental regulation, and fiscal expenditure were identified as the main drivers of GRCC. This study provides a Chinese case study for global energy transition and introduces new ideas for synergy between REI and GF policies.