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Local government debt, digital finance and climate change: Study from the perspective of green innovation

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  • He, Yiqi
  • Hou, Yuxuan
  • Song, Xinyi
  • Chen, Xi

Abstract

In the context of the rapid development of the digital economy, exploring the link between local government debt and climate change is vital. Using data on China's provincial carbon emissions and local debt from 2012 to 2021, this study empirically explored the influence and mechanism between the two. The findings suggest that China must continue minimizing local government debt and mitigating climate change by avoiding the pollution caused by the use of digital finance and increasing the level of green innovation.

Suggested Citation

  • He, Yiqi & Hou, Yuxuan & Song, Xinyi & Chen, Xi, 2025. "Local government debt, digital finance and climate change: Study from the perspective of green innovation," Finance Research Letters, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:finlet:v:78:y:2025:i:c:s1544612325004027
    DOI: 10.1016/j.frl.2025.107139
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    References listed on IDEAS

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