Dynamic impact of green finance on renewable energy development: Based on scale, structure, and efficiency perspectives

Utilizing China's provincial panel data from 2003 to 2021, this paper employs a dynamic panel quantile regression model and mediating test model to investigate the dynamic evolution characteristics, type heterogeneity, and mechanism of green finance (GF) driving renewable energy development (RED) in China, considering the scale, structure, and efficiency of GF. The findings of this study are as follows. While the scale, structure, and efficiency of GF all contribute to the promotion of RED, the impact of green financial structure is particularly significant. As renewable energy continues to develop, the impact of green financial scale and green financial structure gradually diminishes, while the effect of green financial efficiency increases. In comparison to hydropower and solar power, GF has the strongest promotion effect on wind power, and the marginal effect of green financial scale and green financial structure on wind power follows a U-shaped trajectory. The driving of GF on RED is mainly through direct effect, supplemented by indirect effect. In the mechanism by which GF impacts RED, the channels associated with green attributes are relatively smooth. Based on these research conclusions, this paper offers policy recommendations aimed at enhancing RED through GF from perspectives encompassing scale, structure, and efficiency.