The impact of green credits on high-quality energy development: evidence from China

The implementation of green credits has become an important engine for China's high-quality energy development (HQED). On the basis of constructing an index of HQED and the panel data of thirty provinces in China from 2008 to 2019, this study empirically investigated the effects of green credits on HQED and the action mechanisms behind it in a multi-dimensional manner using a panel fixed-effects model, mediating-effects model, and spatial Durbin model. The results indicated that green credits had significantly contributed to China's HQED, and that conclusion still held true after a series of robustness tests were conducted. It was found that industrial structures and human capital were important channels through which green credits influenced China's HQED. Moreover, the spatial spillover effects of green credits on HQED were also confirmed. Finally, in terms of temporal heterogeneity, the positive effects of green credits on HQED were found to have increased significantly after 2012. Also, in terms of regional heterogeneity, this study observed that the positive influence of green credits on HQED was more significantly in central and western China than in eastern China, and in southern China than in northern China. The results obtained in this research investigation will potentially provide some important insights for energy planners and policymakers to further the understanding of the drivers of HQED, and the corresponding transmission mechanisms and regional differences.