Impacts of digital finance on energy efficiency: does environmental regulation matter?

The paper examines how digital finance affects energy efficiency in China using a dynamic panel model and data from 282 cities between 2011 and 2019. The study is based on the hypothesis which is related with digital finance, environmental regulation, and energy efficiency. The results indicate that: (1) Digital finance significantly improves energy efficiency, and this finding is consistent after several tests; (2) Digital finance has a positive effect on energy efficiency in non-resource-based cities, recession and regeneration resource-based cities, and old industrial base cities, but no significant effect on energy efficiency in growth and maturity resource-based cities and non-old industrial base cities; (3) Environmental regulation positively influences how digital finance affects energy efficiency; (4) The impact of digital finance on energy efficiency depends on the degree and tools of environmental regulation. This research offers valuable insights to local governments in China for promoting financial digitization and enhancing energy efficiency.

Can heterogeneous environmental regulations improve industrial green total factor energy efficiency?

Whether heterogeneous environmental regulations in China can improve industrial green total factor energy efficiency (IGTFEE) is essential to sustainable industrial development nationwide. However, under China's fiscal decentralization system, the impact of heterogeneous environmental regulations on the IGTFEE and its underlying mechanism needs further exploration. This study incorporates capital misallocation and local government competition into the research framework and systematically investigates the mechanisms and effects of environmental regulations affecting the IGTFEE under China's fiscal decentralization system. Based on provincial panel data from 2007 to 2020, this study measured the IGTFEE using the Super-SBM model with undesirable outputs. Based on efficiency, this study uses a bidirectional fixed-effects model, an intermediary effect model, and a spatial Durbin model for empirical testing. The results show that the effect of command-and-control environmental regulation on the IGTFEE presents an inverted U shape, while the effect of market-incentive environmental regulation on the IGTFEE presents a U shape. Conversely, the effect of command-and-control environmental regulation on capital misallocation presents a U shape, while the effect of market-incentive environmental regulation on capital misallocation presents an inverted U shape. Capital misallocation is the mediating variable of heterogeneous environmental regulations affecting IGTFEE, but heterogeneous environmental regulations do not affect the IGTFEE through the same mechanisms. The spatial spillover effects of command-and-control and market-incentive environmental regulations on IGTFEE present a U shape. Local governments adopt a differentiation strategy for command-and-control environmental regulation and a simulation strategy for market-incentive environmental regulation. Environmental regulations have spillover effects on the IGTFEE under different competitive strategies, but only the imitation strategy, characterized by the race-to-the-top, can promote local and neighboring IGTFEE. Therefore, we propose the following recommendations: the central government should flexibly adjust the intensity of environmental regulations to maximize the capital allocation effect, set diversified performance assessment indicators to motivate local governments into the healthy competition and reform the modern fiscal system to correct distortions in the behavior of local governments.

How does environmental regulation influence green technological innovation? Moderating effect of green finance

The main factor behind green economic development is green technology innovation (GTI). Environmental regulation and green finance (GF), as important ways to promote ecological civilization construction, run through the entire procedure of GTI. The purpose of this study is to investigate the influence of heterogeneous environmental regulation on GTI and the moderating effect of GF on GTI from both theoretical and empirical perspectives, to provide useful ideas for China's economic reform path selection and environmental governance system optimization. This paper uses information from 30 provinces between 2002 and 2019, and a bidirectional fixed model was constructed. The results show that: First, regulatory environmental regulation (ER₁), legal environmental regulation (ER₂), and economic environmental regulation (ER₃) all have greatly boosted the degree of GTI in each province. Second, GF acts as a highly effective moderator between heterogeneous environmental regulation and GTI. Finally, this article investigates how GF can act as a moderator in various circumstances. The beneficial moderating effect of it is found to be more pronounced in inland areas, areas with weak spending on research and development, and areas with high energy consumption. These research results provide valuable references for accelerating the green development process in China.

Multi-stage dynamic evolution of green financial system from the perspective of bilateral moral hazard

In order to improve the regulatory efficiency of the government in the construction process of the green financial system, the multi-stage dynamic evolution game model of green financial system from the perspective of bilateral moral risk is constructed and analyzed. It is found that cost-controllable and profitable collaborative innovation are the fundamental to realize the sustainable cooperation of green innovation between financial institutions and carbon emission enterprises. The introduction of reward and punishment mechanism and transfer payment mechanism for government is conducive to promoting the willingness of financial institutions and carbon emission enterprises to cooperate in green innovation. However, with the increase of appeal willingness of carbon emission enterprises and the cost reduction of appeal, although the risk of illegal arbitrage of financial institutions can be curbed to a certain extent, there is a risk of deterioration in the collaborative relationship between financial institutions and carbon emission enterprises.

The impact of clean energy development on economic growth in China: from the perspectives of environmental regulation

Given the finite nature of fossil energy and rising environmental pressures, countries are increasing focus on clean energy. By employing provincial panel data from 2003 to 2019 in China, this study sheds light on the effect of clean energy development on economic growth and the role of environmental regulation in the relationship. The study utilized moderating and threshold effect models for empirical estimation. Results show that clean energy development has a positive impact on economic growth in general. In terms of region heterogeneity, the contribution of clean energy development to economic growth is more pronounced in regions with higher levels of economic development. Furthermore, we provide evidence that market-based environmental regulation has a single threshold, which has a positive regulating effect on the relationship between clean energy development and economic growth, while administrative environmental regulation has a double threshold, which has a negative regulating effect on the relationship between the two. The findings of our study provide useful policy directions for maintaining a balance between economic growth and environmental prosperity.

Does FDI improve green total factor energy efficiency under heterogeneous environmental regulation? Evidence from China

Green development is a strategy for China's sustainable economic growth, and improving green total factor energy efficiency (GTFEE) is the key to achieving the dual goals of energy conservation, emission reduction, and economic development. This paper takes panel data of 267 prefecture-level cities in China from 2004 to 2019 as samples to explore how heterogeneous environmental regulation can have the effects of FDI on GTFEE. The results show that, first, except for environmental regulation and FDI independently affecting GTFEE, there is a synergistic effect between environmental regulation and FDI, and their interaction can also significantly affect GTFEE. Secondly, FDI has no significant impact on GTFEE when environmental regulation is low, but FDI can significantly improve GTFEE when environmental regulation is high. Thirdly, market-based environmental regulations (MER) have a better improvement effect on GTFEE than command-based environmental regulations (CER). Therefore, it is necessary to pay attention to the benign interaction between FDI and environmental regulation, especially giving full play to the role of market-based environmental regulation and further improving the design of command-based environmental regulation.

Heterogeneous environmental regulation and industrial structure upgrading: evidence from China

There are obvious differences between different types of environmental regulation, which are manifested in different environmental protection tendencies and goals, and there are also significant differences in policy implementation. Therefore, it is an urgent empirical problem to quantitatively evaluate the impact of heterogeneous environmental regulation on the upgrading of industrial structures. Therefore, on the basis of measuring the level of industrial structure upgrading, this paper empirically tests the impact of heterogeneous environmental regulation on industrial structure upgrading. The results show that the upgrading level of China's industrial structure increased year by year from 2000 to 2018. The three types of environmental regulatory measures have effectively promoted the upgrading of the industrial structure, and the market-incentive environmental regulation (MER) has a significantly higher role in the advancement of the industrial structure than the command-controlled environmental regulation (CER) and the voluntary public participation environmental regulation (VER). With the improvement of regional economic development level, the three types of environmental regulation have gradually become more prominent in promoting the upgrading of industrial structure. In the mechanism test, it is found that technological innovation has a partial mediating effect in the process of CER affecting the upgrading of industrial structure, MER and public VER have a complete mediating effect, while foreign direct investment (FDI) has only a partial mediating effect in the process of the three types of environmental regulation affecting industrial advancement, and there is no mediating effect in the process of influencing the rationalization of industrial structure.

The impact of heterogeneous environmental regulation on innovation of high-tech enterprises in China: mediating and interaction effect

It is important for China's green innovation productivity and sustainable development to study the effect of heterogeneous environmental regulation on microenterprise innovation activities. Based on the panel data of high-tech enterprises in China from 2012 to 2017, the article studies the incentive effect of heterogeneous environmental regulation on technological innovation and the mediation of innovation input and explores whether different types of environmental regulations have interactive effects on enterprise innovation. The results reveal that compared with the command-controlled environmental regulation, the incentive effect of market-incentive environmental regulation and voluntary environmental regulation on enterprise innovation is more significant, where the innovation input fully plays its role as a mediating effect. Further research finds that there is an interactive effect between command-controlled environmental regulation and other two regulatory tools, but no interactive effect between market-incentive environmental regulation and voluntary environmental regulation, which shows that the control-based regulatory tools and more flexible regulatory tools have a complementary effect on enterprise innovation. Through revealing the internal mechanism of environmental regulation on enterprise innovation, the article displays the process of technological innovation, and it also finds that flexible regulation tools and the combination of rigid and flexible tools are more conducive to encourage enterprises to carry out innovation activities.