Natural resources policy making through finance? The role of green finance on energy resources poverty

Abstract

Based on the panel data in China from 2010 to 2019, this study explores the role and mechanism of green finance in alleviating energy poverty and verifies the policy effects of green finance using the regression control method (RCM). The empirical results indicate that if the green finance index is increased by 1 unit, the regional energy poverty level will significantly reduce by 0.08–0.121 units. Green finance significantly suppresses energy poverty by restricting energy-intensive industrial development, improving energy efficiency, and promoting energy structure adjustment. The effectiveness of green finance pilot policy in different regions differs remarkably. The green finance pilot policy implementation in Guangdong and Xinjiang has significantly alleviated the local energy poverty, while the policy effect in Zhejiang, Jiangxi and Guizhou is insignificant. This study broadens the research paradigm of “finance and energy” in theory, and it provides a new idea for countries to explore the establishment of a green finance system and tap its value in promoting sustainable energy consumption.