The Non-Linear Effect of Financial Support on Energy Efficiency: Evidence from China

This study examines the non-linear effect of financial support on energy efficiency for 30 provinces in China, over the period 2003 to 2016. Specifically, we find that technological progress is a key factor in improving energy efficiency, regardless of the transition variable or sample chosen. The non-linear effects of the support of different financial sectors on energy efficiency are different. Banks have the greatest positive impact on energy efficiency, but as economic and financial development levels increase, this impact will diminish. The impact of securities on energy efficiency is contrary to bank support, because as the level of economic and financial development increases, the impact of securities on energy efficiency will shift from negative to positive. The impact of insurance support on energy efficiency is not significant.