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How Does Digital Financial Inclusion Affect Agricultural Carbon Emissions? The Case of China

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  • Juan Wang
  • Li Liu
  • Xue Wang

Abstract

This study utilizes data from 31 provinces in China between 2011 and 2018 to examine the impact of digital financial inclusion on agricultural carbon emissions and its underlying mechanisms. The study finds that digital financial inclusion can significantly reduce agricultural carbon emissions, particularly in southern China and non‐major grain‐producing provinces. Mediation effect analysis reveals that digital financial inclusion can reduce agricultural carbon emissions by enhancing the level of agricultural mechanization. Further analysis reveals that the scale of agricultural operations and the proportion of grain crops can strengthen the relationship between digital financial inclusion and agricultural carbon emissions. The research findings provide empirical evidence and a basis for decision‐making to fully leverage the carbon reduction effects of digital financial inclusion.

Suggested Citation

  • Juan Wang & Li Liu & Xue Wang, 2025. "How Does Digital Financial Inclusion Affect Agricultural Carbon Emissions? The Case of China," Australian Economic Papers, Wiley Blackwell, vol. 64(4), pages 446-456, December.
    • Handle: RePEc:bla:ausecp:v:64:y:2025:i:4:p:446-456
    DOI: 10.1111/1467-8454.12404
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