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The impact of digital finance development on carbon dioxide emissions: Evidence from households in China

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  • Li, Zhong
  • Liu, Weibai
  • Wei, Xun

Abstract

Based on the expansion of the consumption scale caused by the convenience of mobile payment, this paper constructs a general equilibrium theoretical model for analysing the impact of digital finance development on household carbon dioxide emissions. Then, the form empirically tests the impact of digital finance development on households' carbon dioxide emissions using the microdata from the China Household Tracking Survey (CFPS). It is found that the development of digital finance can significantly increase the carbon dioxide emissions of household consumption, mainly from the increase in developmental consumption. The mechanism analysis also shows that the expansion of the consumption scale and the upgrade of consumption tendency caused by the convenience of payment and wage premium achieve the related effects. Finally, residents' environmental awareness and social and environmental governance factors also actively adjust the impact of digital financial development on carbon dioxide emissions.

Suggested Citation

  • Li, Zhong & Liu, Weibai & Wei, Xun, 2023. "The impact of digital finance development on carbon dioxide emissions: Evidence from households in China," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    • Handle: RePEc:eee:tefoso:v:190:y:2023:i:c:s0040162523000495
    DOI: 10.1016/j.techfore.2023.122364
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    Cited by:

    1. Qun He & Aijun Sun & Yu Hua, 2024. "Can Financial Agglomeration Development Reduce Carbon Emissions? Evidence from the Yangtze River Delta Region of China," Sustainability, MDPI, vol. 16(5), pages 1-22, February.
    2. Wang, Zhan-ao & Samuel, Ribeiro-Navarrete & Chen, Xiao-qian & Xu, Bing & Huang, Wei-lun, 2023. "Central bank digital currencies: Consumer data-driven sustainable operation management policy," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    3. Zhao, Congyu & Jia, Rongwen & Dong, Kangyin, 2023. "Does financial inclusion achieve the dual dividends of narrowing carbon inequality within cities and between cities? Empirical evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 195(C).
    4. Haiyang Qiu & Xin Li & Long Zhang, 2023. "Influential Effect and Mechanism of Digital Finance on Urban Land Use Efficiency in China," Sustainability, MDPI, vol. 15(20), pages 1-21, October.

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