The impact of access to credit on energy efficiency

This paper proposes a brand-new measure of energy efficiency at household level and explores how it is affected by access to credit. We calculate the energy and carbon intensity of the related sectors, which experience a substantial decline from 2005 to 2019. Although there is still high inequality in energy use and carbon emissions among Chinese households, the energy efficiency appears to be improved in long run. Our research further maps the relationship between financial market and energy. The results suggest that broadened access to credit encourages households to improve energy efficiency, with higher energy use and carbon emission.

Automated summary

This paper proposes a new measure of energy efficiency at household level and examines the impact of access to credit. The study calculates the energy and carbon intensity of relevant sectors, which have declined significantly from 2005 to 2019. Despite high inequality in energy use and carbon emissions among Chinese households, there is evidence of improved energy efficiency in the long run. The research also explores the relationship between financial markets and energy, finding that increased access to credit encourages households to improve energy efficiency but also leads to higher energy use and carbon emissions.