Impact of Green Financing on Carbon Drifts to Mitigate Climate Change: Mediating Role of Energy Efficiency

Lei Chang,Ziman Xiang,Hongda Liu,Jianhe Wang

doi:10.3389/fenrg.2021.785588

Abstract

Climate change mitigation (CCM) has not been mainly understood and assessed in the terms of carbon drifts persisting at provincial level of China, and to respond the question that how green financing is better financing option for CCM. Thus, our study intends to test the role of green finance on carbon drifts to manage for the mitigation of climate change. For this, unit root test and panel co-integration technique is applied. Study findings reported that the intricate connection between place-and-time-specific GHG emission reduction responsibilities is significant with 18% and the ‘production’, trading and consumption of carbon allowances with 21% and offsets across vast time-space stretches related carbon drift is significant with 19.5% for climate change mitigation. For such significance, green financing is found imperative indicators which is significant at 27.1% with carbon drifts, and mitigates the climate change with 31.3%, which is, relatively high than usual climate change control practices. Our study also provides detailed policy implication on this topicality for associated stakeholder.

Highlights

Climate change mitigation strategies were extensively studied by the previous researchers
Environmental degradation is posing a significant problem for civilization in the future years, with climate change being a key cause for concern
The growing modernization of these countries’ economies and increasing urbanization have substantially increased energy consumption and the generation of environmental problems induced by energy use is a global problem

Summary

Introduction

Climate change mitigation strategies were extensively studied by the previous researchers. The green financing aimed at mitigating the climate change by decreasing the carbon drifts do not reach their envisioned effects. There is a need to identify the nexus between green financing, carbon drifts and climate change mitigation, and present the policy guidelines for key stakeholders if suggested policy measures applied effectively, are expected to enhance climate control and during the crises periods. This is the motivation of recent study (Yang et al, 2021), (He et al, 2020) and (Mohsin et al, 2020b). The carbon strategy and execution is one of the biggest new businesses to deal with climate change (Ikram et al, 2019a), (Liu et al, 2021) and (Shah et al, 2019)

Methods

Results

Discussion

Conclusion