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Artificial intelligence development and the coupled growth of green and inclusive finance: Evidence from China

Author

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  • Bu, Ya
  • Tang, Min
  • Du, Xinze
  • Li, Hui

Abstract

Promoting the coordinated development of green and inclusive finance is vital to achieving carbon neutrality and common prosperity, yet the role of artificial intelligence (AI) in this process remains insufficiently understood. Existing research typically considers AI’s effects on green finance or inclusive finance separately, while overlooking their interaction and spatial spillover effects. Exploiting China’s New Generation AI Innovation and Development Pilot Zone (AIDPZ) policy as a quasi-natural experiment, we examine panel data for 289 prefecture-level cities from 2015 to 2023 using spatial difference-in-differences and double machine learning approaches. The results show that AIDPZs modestly inhibit the local coupling of green and inclusive finance, but produce positive spillover effects in neighbouring cities. Mechanism analysis suggests that weakened environmental regulation suppresses local coupling, whereas green technological innovation and fiscal support help offset this negative effect. These findings highlight the importance of aligning AI development with environmental governance to promote sustainable and inclusive financial development.

Suggested Citation

  • Bu, Ya & Tang, Min & Du, Xinze & Li, Hui, 2026. "Artificial intelligence development and the coupled growth of green and inclusive finance: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 92(C), pages 51-79.
    • Handle: RePEc:eee:ecanpo:v:92:y:2026:i:c:p:51-79
    DOI: 10.1016/j.eap.2026.05.019
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