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How does urban digital finance drive low-carbon development? evidence from China’s green transition

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  • Lin, Tianchen
  • Yang, Haolong

Abstract

This study explores how digital finance promotes low-carbon development in 290 Chinese cities from 2013 to 2023. Empirical results show that digital finance significantly reduces carbon emission intensity, with coverage breadth and digitalization as key drivers. Green innovation partially mediates this effect. A threshold effect is observed—digital finance is more effective in cities with a lower share of secondary industry. The findings offer important insights for green policy design and digital infrastructure to accelerate sustainable urban transitions.

Suggested Citation

  • Lin, Tianchen & Yang, Haolong, 2025. "How does urban digital finance drive low-carbon development? evidence from China’s green transition," Finance Research Letters, Elsevier, vol. 86(PF).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pf:s1544612325020008
    DOI: 10.1016/j.frl.2025.108746
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    References listed on IDEAS

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