TITLE:
The Impact of Digital Finance Development on CO2 Emissions in China
AUTHORS:
Xiaoyu Zhou
KEYWORDS:
CO2 Emission Intensity, Digital Finance, Mediating Effect
JOURNAL NAME:
Low Carbon Economy,
Vol.13 No.3,
August
26,
2022
ABSTRACT: The problem of environmental pollution caused by massive CO2 emissions is becoming increasingly serious. As an environment-friendly
financial service, digital finance is conducive to the development of a
low-carbon economy. Based on the panel data of 287 cities in China from 2011 to
2019, this paper uses a two-way fixed-effect model and an intermediary model to
study the impact of digital finance on carbon emissions. The empirical analysis
results show that: in the whole of China, digital finance has an obvious effect
on reducing carbon dioxide emission intensity; the impact of digital finance on
carbon emission intensity has regional heterogeneity, and the development of
digital finance in eastern China can play a significant role in reducing carbon
dioxide emissions. The impact of digital finance on carbon emission intensity
is dimensionally heterogeneous, and the development of the usage depth of
digital finance and the digitization level can reduce carbon emission
intensity; technological progress plays a partial intermediary role in the
process of digital finance affecting carbon emissions. Digital finance can
drive low-carbon development by promoting the optimization and upgrading of
technology. Based on the above conclusions, this paper puts forward
corresponding suggestions for the development of China’s green and low-carbon
economy.