Existing research is ambiguous about the relationship between the financial industry development scale and carbon emission reduction targets. Therefore, using data from 30 provinces and municipalities directly under the central government (excluding Tibet, Hong Kong, Macao, and Taiwan) from 2009–2018, this study divides the reduction targets into emission quantity and intensity to investigate this relationship. Using the improved STIRPAT equation, the pooled OLS and other estimation technique in robustness test, we found that the financial industry development scale is positively related to emission quantity and negatively related to emission intensity. The financial industry development scale inhibits carbon emission intensity through the mediating role of the technology market development degree, which also has a moderating effect on the scale. The study also discusses the regional differences in the scale's impact on carbon emission intensity, its compensation effect on the economic loss caused by carbon emissions, and the positive influence of policy implementation on carbon emission intensity. We provide suggestions to reduce carbon emissions and achieve carbon neutrality.
MohsinMKamranHWNawazMA,et al.Assessing the impact of transition from nonrenewable to renewable energy consumption on economic growth-environmental nexus from developing asian economies. J. Environ. Manag2021; 284: 111999.
2.
GuoJXZhuLFanY. Emission path planning based on dynamic abatement cost curve. Eur. J. Oper. Res2016; 255: 996–1013.
3.
AkanMOADhavaleDGSarkisJ. Greenhouse gas emissions in the construction industry: an analysis and evaluation of a concrete supply chain. J. Clean. Prod2017; 167: 1195–1207.
4.
VaccaroRRoccoMV. Quantifying the impact of low carbon transition scenarios at regional level through soft-linked energy and economy models: the case of south-tyrol province in Italy. Energy2021; 220: 119742.
5.
BrownTSchlachtbergerDKiesA,et al.Synergies of sector coupling and transmission reinforcement in a cost-optimised, highly renewable european energy system. Energy2018; 160: 720–739.
6.
Al-GhamdiKAHussainG. On the CO2 characterization in incremental forming of roll bonded laminates. J. Clean. Prod2017; 156: 214–225.
7.
KhanAMLiangLMiaM,et al.Development of process performance simulator (PPS) and parametric optimization for sustainable machining considering carbon emission, cost and energy aspects. Renew. Sustain. Energy Rev2021; 139: 110738.
8.
YuanSJMusibauHOGencSY,et al.Digitalization of economy is the key factor behind fourth industrial revolution: how G7 countries are overcoming with the financing issues?Technol. Forecast Soc. Change2021; 165: 120533.
9.
CaoKYXuXPWuQ,et al.Optimal production and carbon emission reduction level under cap-and-trade and low carbon subsidy policies. J. Clean. Prod2017; 167: 505–513.
10.
DongFDaiYJZhangSN,et al.Can a carbon emission trading scheme generate the porter effect? Evidence from pilot areas in China. Sci. Total Environ2019a; 653: 565–577.
11.
HeXXXiongDPKhalifaWMS,et al.Chinese Banking sector: a major stakeholder in bringing fourth industrial revolution in the country. Technol. Forecast Soc. Change2021; 165: 120519.
12.
ShairFShaorongSKamranHW,et al.Assessing the efficiency and total factor productivity growth of the banking industry: do environmental concerns matters?Environ. Sci. Pollut. Res2021. DOI: 10.1007/s11356-020-11938-y
13.
KarikariNKGyanKKKhanMAH,et al.Institutional quality and social cost of intermediation in Africa: does the level of financial market development matter?Inernational Journal of Finance & Economics2021. DOI: 10.1002/ijfe.2515
14.
CaoEBYuM. Trade credit financing and coordination for an emission-dependent supply chain. Comput. Ind. Eng2018; 119: 50–62.
15.
ApergisNBen JebliMBen YoussefS. Does renewable energy consumption and health expenditures decrease carbon dioxide emissions? Evidence for sub-saharan Africa countries. Renewable Energy2018; 127: 1011–1016.
16.
MaryniakPTruckSWeronR. Carbon pricing and electricity markets—The case of the Australian clean energy bill. Energy Econ2019; 79: 45–58.
17.
BiGBJinMYLingLY,et al.Environmental subsidy and the choice of Green technology in the presence of Green consumers. Ann. Oper. Res2017; 255: 547–568.
18.
MiZFWeiYMWangB,et al.Socioeconomic impact assessment of China's CO2 emissions peak prior to 2030. J. Clean. Prod2017; 142: 2227–2236.
19.
KouMTYangYQChenKH. The impact of external R&D financing on innovation process from a supply-demand perspective. Econ. Model2020; 92: 375–387.
20.
WangQZhangFY. Does increasing investment in research and development promote economic growth decoupling from carbon emission growth? An empirical analysis of BRICS countries. J. Clean. Prod2020; 252.
21.
AshfaqAIanakievA. Cost-minimised design of a highly renewable heating network for fossil-free future. Energy2018; 152: 613–626.
22.
ConnollyDLundHMathiesenBV. Smart energy Europe: the technical and economic impact of one potential 100&per; renewable energy scenario for the European Union. Renew. Sustain. Energy Rev2016; 60: 1634–1653.
23.
ZhangCC. Factors influencing the allocation of regional sci-tech financial resources based on the multiple regression model. Math. Probl. Eng2021; 2021: 6688549.
24.
CharfeddineLKahiaM. Impact of renewable energy consumption and financial development on CO2 emissions and economic growth in the MENA region: a panel vector autoregressive (PVAR) analysis. Renewable Energy2019; 139: 198–213.
25.
DuLMHanleyAWeiC. Estimating the marginal abatement cost curve of CO2 emissions in China: provincial panel data analysis. Energy Econ2015; 48: 217–229.
26.
DongFWangYSuB,et al.The process of peak CO2 emissions in developed economies: a perspective of industrialization and urbanization. Resourc. Conservat. Recycl2019b; 141: 61–75.
27.
AdedoyinFFGumedeMIBekunFV,et al.Modelling coal rent, economic growth and CO2 emissions: does regulatory quality matter in BRICS economies?Sci. Total Environ2020; 710: 136284.
28.
DongFYuBLHadachinT,et al.Drivers of carbon emission intensity change in China. Resourc. Conservat. Recycl2018; 129: 187–201.
29.
MagazzinoCMeleMSchneiderN. A machine learning approach on the relationship among solar and wind energy production, coal consumption, GDP, and CO2 emissions. Renew Energy2020; 167: 99–115.
30.
AhmadNDuLSLuJY,et al.Modelling the CO2 emissions and economic growth in Croatia: is there any environmental kuznets curve?Energy2017; 123: 164–172.
31.
WangQZhangFY. The effects of trade openness on decoupling carbon emissions from economic growth – evidence from 182 countries. J. Clean. Prod2021; 279. DOI: 10.1016/j.jclepro.2020.123838
32.
RenXDShaoQLZhongRY. Nexus between Green finance, non-fossil energy use, and carbon intensity: empirical evidence from China based on a vector error correction model. J Cleaner Prod2020; 277.
33.
SalahuddinMAlamKOzturkI,et al.The effects of electricity consumption, economic growth, financial development and foreign direct investment on CO2 emissions in Kuwait. Renew. Sustain. Energy Rev2017; 81: 2002–2010.
34.
YaoSZhangS. Energy mix, financial development, and carbon emissions in China: a directed technical change perspective. Environ. Sci. Pollut. Res2021.
35.
AcheampongAO. Modelling for insight: does financial development improve environmental quality?Energ. Econ2019; 83: 156–179.
36.
AcheampongAO. Economic growth, CO2 emissions and energy consumption: what causes what and where?Energ. Econ. 2018; 74: 677–692.
37.
LiuJHuangYYChangCP. Leverage analysis of carbon market price fluctuation in China. J. Clean. Prod2020; 245: 118557.
38.
HeWJYangYWangZH,et al.Estimation and allocation of cost savings from collaborative CO2 abatement in China. Energy Econ2018; 72: 62–74.
39.
CaoEBDuLXRuanJH. Financing preferences and performance for an emission-dependent supply chain: supplier vs. Bank. Int. J. Prod. Econ2019; 208: 383–399.
40.
ShahzadSJHKumarRRZakariaM,et al.Carbon emission, energy consumption, trade openness and financial development in Pakistan: a revisit. Renew. Sustain. Energy Rev2016; 70: 185–192.
41.
YingJJSovacoolBK. A fair trade? Expert perceptions of equity, innovation, and public awareness in China's Future emissions trading scheme. Clim Change2021; 164: 31.
42.
ChenZHuangWZhengX. The decline in energy intensity: does financial development matter?Energy Policy2019a; 134. DOI: 10.1016/j.enpol.2019.110945
43.
XingTJiangQMaX. To facilitate or curb? The role of financial development in China's Carbon emissions reduction process: a novel approach. Int J Environ Res Public Health2017; 14: 1222.
44.
FangZGaoXSunCW. Do financial development, urbanization and trade affect environmental quality? Evidence from China. J. Clean. Prod2020; 259: 120892.
45.
MensahCNDaudaLBoamahKB,et al.One district one factory policy of Ghana, a transition to a low-carbon habitable economy?Environ. Dev. Sustain2021; 23: 703–721.
46.
LiYWeiYGShanSQ,et al.Pathways to a low-carbon economy: estimations on macroeconomic costs and potential of carbon emission abatement in Beijing. J. Clean. Prod2018; 199: 603–615.
47.
ZouTJZouQMHuLQ. Joint decision of financing and ordering in an emission-dependent supply chain with yield uncertainty. Comput. Ind. Eng2021; 152: 106994.
48.
BaiQGGongYMJinMZ,et al.Effects of carbon emission reduction on supply chain coordination with vendor-managed deteriorating product inventory. Int. J. Prod. Econ2018; 208: 83–99.
49.
BashirMFMaBJShahbazM,et al.The nexus between environmental tax and carbon emissions with the roles of environmental technology and financial development. Plos One2020; 15: e0242412.
50.
CebullaFNaeglerTPohlM. Electrical energy storage in highly renewable european energy systems: capacity requirements, spatial distribution, and storage dispatch. J. Energy Storage2017; 14: 211–223.
51.
AlbrizioSKozlukTZippererV. Environmental policies and productivity growth: evidence across industries and firms. J. Environ. Econ. Manag2017; 81: 209–226.
52.
HuYCRenSGWangYJ,et al.Can carbon emission trading scheme achieve energy conservation and emission reduction?Evidence from the industrial sector in China. Energy Econ2020; 85: 104590.
53.
OgbonnaCNNwobaEG. Bio-based flocculants for sustainable harvesting of microalgae for biofuel production. A review. Renew. Sustain. Energy Rev2021; 139: 110690.
54.
LiRRWangQLiuY,et al.Per-capita carbon emissions in 147 countries: the effect of economic, energy, social, and trade structural changes. Sustain. Prod. Consum2021; 27: 1149–1164.
55.
ChenZLYuanXCZhangXL,et al.How will the Chinese national carbon emissions trading scheme work? The assessment of regional potential gains. Energy Policy2020; 137: 111095.
56.
SongMLXieQJWangSH,et al.Intensity of environmental regulation and environmentally biased technology in the employment market. Omega—Int. J. Manag. Sci2021; 100: 102201.
57.
IbrahimMVoXV. Exploring the relationships among innovation, financial sector development and environmental pollution in selected industrialized countries. J. Environ. Manag2021; 284: 112057.
58.
AiHSHuSLLiK,et al.Environmental regulation, total factor productivity, and enterprise duration: evidence from China. Bus. Strat. Environ2020; 29: 2284–2296.
59.
LiLMsaadHSunHP,et al.Green innovation and business sustainability: new evidence from energy intensive industry in China. Int. J. Environ. Res. Publ. Health2020; 17: 7826.
60.
AghionPBergeaudACetteG,et al.Coase lecture - The inverted-U relationship between credit access and productivity growth. Economica2019; 86: 1–31.
61.
DongFWangYZhengL,et al.Can industrial agglomeration promote pollution agglomeration? Evidence from China. J. Clean. Prod2020; 246: 118960.
62.
DongFZhangXJLiuYJ,et al.Economic policy choice of governing haze pollution: evidence from global 74 countries. Environ. Sci. Pollut. Res2021; 28: 9430–9447.
63.
AhmadMJiangPMajeedA,et al.The dynamic impact of natural resources, technological innovations and economic growth on ecological footprint: an advanced panel data estimation. Resourc. Policy2020; 69: 101817.
64.
WangQZhouYL. Evolution and drivers of production-based carbon emissions in China and India: differences and similarities. J. Clean. Prod2020; 277: 123958.
65.
AnserMK. Impact of energy consumption and human activities on carbon emissions in Pakistan: application of STIRPAT model. Environ. Sci. Pollut. Res2019; 26: 13453–13463.
66.
MaYZhangQYinQY. Top management team faultlines, Green technology innovation and firm financial performance. J. Environ. Manag2021; 285: 112095.
67.
ChenTHChangRC. Using machine learning to evaluate the influence of FinTech patents: the case of Taiwan's Financial industry. J. Comput. Appl. Math2021; 390: 113215.
68.
GuoMYHuYFYuJD. The role of financial development in the process of climate change: evidence from different panel models in China. Atmos. Pollut. Res2019; 10: 1375–1382.
69.
BeckTChenTLinC,et al.Financial innovation: the bright and the dark sides. J. Bank. Financ2016; 72: 28–51.
70.
GuJQGouliamosKLobontOR,et al.Is the fourth industrial revolution transforming the relationship between financial development and its determinants in emerging economies?Technol. Forecast Soc Change2021; 165: 120563.
71.
PayneEHMDahlAJPeltierJ. Digital servitization value co-creation framework for AI services: a research agenda for digital transformation in financial service ecosystems. J. Res. Interact. Market2021. DOI: 10.1108/JRIM-12-2020-0252
72.
HuDQiuLSheMY,et al.Sustaining the sustainable development: how do firms turn government Green subsidies into financial performance through Green innovation?Business Strategy and the Environment2021. DOI: 10.1002/bse.2746
73.
TrivellasPMalindretosGReklitisP. Implications of Green logistics management on sustainable business and supply chain performance: evidence from a survey in the Greek agri-food sector. Sustainability2020; 12: 10515.
74.
BaiYSongSYJiaoJL,et al.The impacts of government R&D subsidies on Green innovation: evidence from Chinese energy-intensive firms. J. Clean. Prod2019; 233: 819–829.
75.
ChenXYWangY. Research on financing efficiency of China's Strategic emerging industries based on super efficiency DEA and tobit model. Int. J. Emerg. Market2020. DOI: 10.1108/IJOEM-02-2020-0188
76.
SiewRYJ. Climate-related financial disclosure and the property and construction sector. Proc. Inst Civ. Eng.—Eng. Sustain2021; 174: 3–8.
77.
AnSMLiBSongDP,et al.Green credit financing versus trade credit financing in a supply chain with carbon emission limits. Eur. J. Oper. Res2021; 292: 125–142.
78.
ChenMAWuQXYangBZ. How valuable is fintech innovation?Rev. Financ. Stud2019b; 32: 2062–2106.
79.
AcheampongAOBoatengEB. Modelling carbon emission intensity: application of artificial neural network. J. Clean. Prod2019; 225: 833–856.
80.
JiangMXZhuBZChevallierJ,et al.Allocating provincial CO2 quotas for the Chinese national carbon program. Austral. J. Agr. Resourc. Econ2018; 62: 457–479.
81.
ShiHLiXLiuXP,et al.Global protected areas boost the carbon sequestration capacity: evidences from econometric causal analysis. Sci. Total Environ2020; 715. DOI: 10.1016/j.scitotenv.2020.137001
