  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.
