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Pathway to carbon reduction in China: The role of coupling synergies of the digital economy and green finance

Author

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  • You, Mingyang
  • Wang, Bo
  • Zhao, Jun
  • Huang, Hongyun

Abstract

On the basis of calculating the coupling of synergies of the digital economy and green finance (DEGF), this study utilizes the data of 30 provinces from 2014 to 2021 to explore whether this coupling accelerates carbon reduction. This study also analyses the heterogeneity and mechanism. We find that the coupling of synergies of the DEGF has increased substantially during the sample period, from mildly disordered to barely synergy. Moreover, this study finds that the coupling of synergies of the DEGF has helped stimulate carbon-reduction activities significantly. This effect is particularly prominent in the western area and non-free trade zone provinces. Regarding the mechanism routes, increasing economic size and improved technical innovation are valid transmission paths of the coupling of synergies of the DEGF for boosting carbon mitigation. Accordingly, we propose some useful and practical policy implications.

Suggested Citation

  • You, Mingyang & Wang, Bo & Zhao, Jun & Huang, Hongyun, 2025. "Pathway to carbon reduction in China: The role of coupling synergies of the digital economy and green finance," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 258-273.
    • Handle: RePEc:eee:ecanpo:v:86:y:2025:i:c:p:258-273
    DOI: 10.1016/j.eap.2025.03.027
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    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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