This study delves into the intricate relationship between green finance and energy efficiency, focusing on how green technology innovation and energy structure transformations contribute to this dynamic. Utilizing panel data from China's provinces over the period 2015-2022, the research aims to uncover the nuances of how green finance can serve as a catalyst for enhancing energy efficiency across different regions. The objective is to quantify the impact of green finance on energy efficiency, considering the mediating roles of green technology innovation and shifts in energy structure. The analysis employs a sophisticated panel entropy weighting technique to analyze the data, ensuring a robust examination of the relationships between these variables. The results reveal a significant positive impact of green finance on energy efficiency, mediated by advances in green technology and modifications in the energy structure towards more sustainable forms. Specifically, regions with higher engagement in green finance initiatives demonstrated marked improvements in energy efficiency, attributed to substantial investments in green technologies and a gradual shift away from traditional, inefficient energy sources. These findings underscore the pivotal role of green finance in driving the transition towards a more energy-efficient and sustainable economic model. Policy implications drawn from this study suggest that targeted financial policies promoting green investments can significantly bolster energy efficiency.
Keywords: Energy efficiency; Green finance; Green technology innovation.
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