IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v71y2025ics154461232401434x.html

Digital finance as a catalyst for energy transition and sustainable rural economic growth

Author

Listed:
  • Gong, Qinyi
  • Zhang, Rui

Abstract

This paper uses provincial level data from 2011 to 2020 in China to analyse the role and mechanism of digital finance in the sustainable growth of China's rural economy. We find that digital finance promotes sustainable rural economic growth by accelerating China's rural energy transition. When the level of rural energy transition exceeds the threshold, the promoting effect is stronger. As the level of regional digital finance development increases, its promoting effect on energy transition and sustainable economic growth also becomes stronger. Compared to the breadth of coverage and depth of use, the degree of digitization has the greatest impact.

Suggested Citation

  • Gong, Qinyi & Zhang, Rui, 2025. "Digital finance as a catalyst for energy transition and sustainable rural economic growth," Finance Research Letters, Elsevier, vol. 71(C).
    • Handle: RePEc:eee:finlet:v:71:y:2025:i:c:s154461232401434x
    DOI: 10.1016/j.frl.2024.106405
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S154461232401434X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2024.106405?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Li, Yuanyuan & Zhang, Yindan & Geng, Liping, 2024. "Digital finance, financing constraints and supply chain resilience," International Review of Economics & Finance, Elsevier, vol. 96(PA).
    2. Bingjing Mei & Arshad Ahmad Khan & Sufyan Ullah Khan & Muhammad Abu Sufyan Ali & Jianchao Luo, 2022. "Complementarity or Substitution: A Study of the Impacts of Internet Finance and Rural Financial Development on Agricultural Economic Growth," Agriculture, MDPI, vol. 12(11), pages 1-19, October.
    3. Wang, Jing, 2023. "Digital inclusive finance and rural revitalization," Finance Research Letters, Elsevier, vol. 57(C).
    4. Yang Liu & Chunyu Liu & Mi Zhou, 2021. "Does digital inclusive finance promote agricultural production for rural households in China? Research based on the Chinese family database (CFD)," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 13(2), pages 475-494, January.
    5. Yang Liu & Chunyu Liu & Mi Zhou, 2021. "Does digital inclusive finance promote agricultural production for rural households in China? Research based on the Chinese family database (CFD)," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 13(2), pages 475-494, January.
    6. Shahbaz, Muhammad & Wang, Jianda & Dong, Kangyin & Zhao, Jun, 2022. "The impact of digital economy on energy transition across the globe: The mediating role of government governance," Renewable and Sustainable Energy Reviews, Elsevier, vol. 166(C).
    7. Li, Chengming & Wang, Yilin & Zhou, Zhihan & Wang, Zeyu & Mardani, Abbas, 2023. "Digital finance and enterprise financing constraints: Structural characteristics and mechanism identification," Journal of Business Research, Elsevier, vol. 165(C).
    8. Tao Cen & Shuping Lin & Qiaoyun Wu, 2022. "How Does Digital Economy Affect Rural Revitalization? The Mediating Effect of Industrial Upgrading," Sustainability, MDPI, vol. 14(24), pages 1-13, December.
    9. Claessens, Stijn & Perotti, Enrico, 2007. "Finance and inequality: Channels and evidence," Journal of Comparative Economics, Elsevier, vol. 35(4), pages 748-773, December.
    10. Jiapeng Dai & Qiao Liang & Eddy Tat Hiung Yap, 2024. "Driving Corporate Sustainable Development: Assessing the Impact of ESG Disclosure on Sustainable Growth," Palgrave Studies in Impact Finance, in: Ahmed Imran Hunjra & John W. Goodell (ed.), The Palgrave Handbook of Green Finance for Sustainable Development, chapter 0, pages 595-616, Palgrave Macmillan.
    11. Apergis, Nicholas & Payne, James E. & Menyah, Kojo & Wolde-Rufael, Yemane, 2010. "On the causal dynamics between emissions, nuclear energy, renewable energy, and economic growth," Ecological Economics, Elsevier, vol. 69(11), pages 2255-2260, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Li Cheng & Yufei Zhang & Yang Xiang & Weiting Wang, 2026. "Research on the impact of rural digitization on the synergistic development of rural environment and economic systems: evidence from China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 28(4), pages 10487-10524, April.
    2. Xi Laiwang & Ali Abbas & Ai Kunpeng & Xi We, 2025. "Quantifying the role of digitalization, social factors and energy transition to achieve sustainability in East Asia," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-15, December.
    3. Chen, Yiru & Liu, Li & Zheng, Sufang, 2025. "Impact of digital financial inclusion on rural revitalization," Finance Research Letters, Elsevier, vol. 85(PC).
    4. Wu, Bei & Ma, Wenxia & Zhao, Qi, 2025. "Digital economy and urban green transformation," International Review of Financial Analysis, Elsevier, vol. 104(PA).
    5. Xiaqun Liu & Yaming Zhuang & Xiaoyue Qiu, 2025. "Financial Support Efficiency of Rural Revitalization: Based on Three-Stage DEA Model and Malmquist Index Model," Sustainability, MDPI, vol. 17(3), pages 1-15, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Yudong & Cui, Ruiqing & Wei, Xiaobei & Chen, Tianyong, 2025. "How digital financial inclusion enhances agroecological efficiency: Impact effects and mechanism tests," International Review of Economics & Finance, Elsevier, vol. 97(C).
    2. Jiang, Yankun & Han, Guanghe & Yu, Dan, 2024. "Digital finance and agricultural green total factor productivity: the mediating role of digital village development," Finance Research Letters, Elsevier, vol. 67(PB).
    3. Xu, Zhiyi & Yang, Jindi, 2025. "Impact of digital finance on rural industry revitalization," International Review of Economics & Finance, Elsevier, vol. 97(C).
    4. Wang, Yuyu & Zhao, Zengli & Lu, Chen, 2024. "Does digital inclusive finance increase land rent? Evidence from rural China," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 1025-1043.
    5. Wenjun Ge & Siyuan Wu & Derong Yang, 2024. "Who are the genuine contributors to economic development under environmental regulation? Evidence from total factor productivity in the three industries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(9), pages 22801-22838, September.
    6. Yin, Lei & Yang, Yuanyuan, 2024. "How does digital finance influence corporate greenwashing behavior?," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 359-373.
    7. Yi Huang & Feiwu Ren & Yanwei Wang, 2026. "Evaluation and pathways for achieving agricultural resilience under the framework of climate-smart agriculture," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 13(1), pages 1-21, December.
    8. Yingzheng Yan & Liupeng Chen & Ziwei Zhou & Yuanzhu Wei, 2025. "Digital financial inclusion and agricultural modernization development in China—a study based on the perspective of agricultural mechanization services," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-11, December.
    9. Liu, Yuanyang & Tian, Xuemei & Long, Yang, 2025. "Digital economy and corporate ESG performance: Cost reduction or efficiency improvement?," Finance Research Letters, Elsevier, vol. 77(C).
    10. Man, Guo & Haiyan, Yang, 2026. "Digital inclusive finance, spatial inequality, and household education investment," Finance Research Letters, Elsevier, vol. 91(C).
    11. Junxia Liu & Yayun Ren, 2026. "Can household inclusive finance alleviate the relative poverty of rural residents? Evidence from static and dynamic perspectives," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 13(1), pages 1-19, December.
    12. Pu, Zhengning & Liu, Jingyu & Yang, Mingyan, 2024. "The effect of digital technology on residential and non-residential carbon emission," International Review of Economics & Finance, Elsevier, vol. 95(C).
    13. Li, Bin & Pan, Ya, 2025. "Digital inclusive finance and rural entrepreneurial survival: The moderating role of digital and financial literacy," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 1119-1136.
    14. Li, Jianan & Guo, Yunlong & Wei, Lei & Niu, Xiaoxiao & Li, Wentong, 2026. "Patient capital and supply chain resilience in manufacturing enterprises: An analysis from the perspectives of funding, governance, and innovation," International Review of Financial Analysis, Elsevier, vol. 110(C).
    15. Zhou, Yufei & Li, Shuqin & Li, Hao & Wang, Minglan & Haneklaus, Nils & Li, Binlin, 2025. "Digital inclusive finance and resilient livelihoods: Lessons from China’s Rural Revitalization Strategy," Economic Analysis and Policy, Elsevier, vol. 88(C), pages 971-991.
    16. Yunping Hao & Bing Zhang & Dongying Du, 2026. "Green finance, FinTech and high-quality agricultural development," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 28(4), pages 9335-9365, April.
    17. Yang Jingyi & Guo Xiaoyang & Zhang Xiuwu, 2024. "Analysis of the Effect of Digital Financial Inclusion in Promoting Inclusive Growth: Mechanism and Statistical Verification," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 18(1), pages 1-18.
    18. Yang, Senmiao & He, Xiaohui & Jiang, Qingzhe & Wang, Jianda, 2025. "Path to environmental justice: How does the digital economy narrow environmental inequality?," Energy, Elsevier, vol. 322(C).
    19. Huang, Zengjian & Wang, Leyi & Yu, Wensong, 2025. "Financial development, electronic payments, and residents' consumption: Evidence from rural China," Finance Research Letters, Elsevier, vol. 71(C).
    20. Yu Deng & Wenxia Zhang, 2023. "Modified CPT-TODIM method for evaluating the development level of digital inclusive finance under probabilistic hesitant fuzzy environment," PLOS ONE, Public Library of Science, vol. 18(3), pages 1-22, March.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:71:y:2025:i:c:s154461232401434x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.