2. Universidad Cardenal Herrera-CEU

In this study, we analyse the relationship between financial development and energy intensity in 28 Chinese provinces over the period 1999 to 2014. Using a wide variety of financial development measures, as well as specific indicators capturing the level of state intervention in the financial system and the degree of market-driven financing in the economy, we examine whether limited access to finance acts as a barrier to reducing energy intensity. Our estimations control for variables such as state investment, stock market capitalization and the composition effect. Further, a GMM estimator is used to control for endogeneity in our models. Our results provide evidence that a poorly functioning financial system constrains the reduction of energy intensity across regions. However, the strength of these effects has been gradually declining over time, especially following the implementation of the Green Credit Policy. Limitations in domestic access to finance as well as the misallocation of funds and the efficient use of capital have policy implications, as they can reduce the incentives for investment in the energy sector. These findings are a source of considerable interest in light of the new policy based on green credit, and they highlight new opportunities as well as challenges to sustainable economic growth.

We analyse the default behaviour of Spanish households immediately before and after the recent financialcrisis. Using several waves of the Survey of Household Finances (a tri-annual survey of financial positionof Spanish households), we show that younger, poorer and less well educated households are mostlikely to default. A key contribution is to explain the change in arrears since the onset of the crisis.Using information on credit applications and acceptances we decompose the change in arrears among allhouseholds into a contribution from four parts: (i) changes in characteristics; (ii) changes in applications;(iii) changes in acceptances; (iv) changes in arrears among borrowers. We show the last is the most important contribution.