The synergistic impacts of green finance and the digital economy on urban low-carbon transition: Insights from 293 Chinese cities

Green finance and the digital economy are now widely acknowledged as crucial catalysts for urban low-carbon transition. However, most studies ignore the synergistic between these two factors, as well as the related mechanisms and the spatial influence. Leveraging panel data from 293 Chinese cities over the period 2014–2022, this paper explores how green finance and the digital economy affect urban low-carbon transition from a synergistic perspective. The results indicate that both factors play substantial roles in facilitating urban low-carbon transition and also exert a synergistic effect. Such synergy is achieved primarily through fostering green technology innovation, advancing industrial upgrading, and improving energy efficiency. Moreover, the synergistic effect generates positive spatial spillovers, promoting low-carbon transition in neighboring areas. Notably, the mitigation effect of these synergies is particularly pronounced in eastern, non-resource-based and lower-carbon-intensity cities. These findings offer empirical experience and theoretical insights for promoting the integrated development of urban greening and digitalization.