IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v190y2023ics0040162523000495.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162523000495
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2023.122364?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 search for a different version of it.

    References listed on IDEAS

    as
    1. Kajol, K. & Singh, Ranjit & Paul, Justin, 2022. "Adoption of digital financial transactions: A review of literature and future research agenda," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    2. Tao Lin & Yunjun Yu & Xuemei Bai & Ling Feng & Jin Wang, 2013. "Greenhouse Gas Emissions Accounting of Urban Residential Consumption: A Household Survey Based Approach," PLOS ONE, Public Library of Science, vol. 8(2), pages 1-12, February.
    3. Das, Aparna & Paul, Saikat Kumar, 2014. "CO2 emissions from household consumption in India between 1993–94 and 2006–07: A decomposition analysis," Energy Economics, Elsevier, vol. 41(C), pages 90-105.
    4. Leitão, João & Ferreira, Joaquim & Santibanez-González, Ernesto, 2022. "New insights into decoupling economic growth, technological progress and carbon dioxide emissions: Evidence from 40 countries," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    5. Zafar, Muhammad Wasif & Zaidi, Syed Anees Haider & Mansoor, Sadia & Sinha, Avik & Qin, Quande, 2022. "ICT and education as determinants of environmental quality: The role of financial development in selected Asian countries," Technological Forecasting and Social Change, Elsevier, vol. 177(C).
    6. Wei, Yi-Ming & Liu, Lan-Cui & Fan, Ying & Wu, Gang, 2007. "The impact of lifestyle on energy use and CO2 emission: An empirical analysis of China's residents," Energy Policy, Elsevier, vol. 35(1), pages 247-257, January.
    7. Reynolds, Christian John & Piantadosi, Julia & Buckley, Jonathan David & Weinstein, Philip & Boland, John, 2015. "Evaluation of the environmental impact of weekly food consumption in different socio-economic households in Australia using environmentally extended input–output analysis," Ecological Economics, Elsevier, vol. 111(C), pages 58-64.
    8. Avom, Désiré & Nkengfack, Hilaire & Fotio, Hervé Kaffo & Totouom, Armand, 2020. "ICT and environmental quality in Sub-Saharan Africa: Effects and transmission channels," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    9. Razzaq, Asif & Yang, Xiaodong, 2023. "Digital finance and green growth in China: Appraising inclusive digital finance using web crawler technology and big data," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    10. Zhang, Chunhong & Khan, Irfan & Dagar, Vishal & Saeed, Asif & Zafar, Muhammad Wasif, 2022. "Environmental impact of information and communication technology: Unveiling the role of education in developing countries," Technological Forecasting and Social Change, Elsevier, vol. 178(C).
    11. Bin, Shui & Dowlatabadi, Hadi, 2005. "Consumer lifestyle approach to US energy use and the related CO2 emissions," Energy Policy, Elsevier, vol. 33(2), pages 197-208, January.
    12. Tao, Ran & Su, Chi-Wei & Naqvi, Bushra & Rizvi, Syed Kumail Abbas, 2022. "Can Fintech development pave the way for a transition towards low-carbon economy: A global perspective," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    13. Wang, Qiang & Han, Xinyu, 2021. "Is decoupling embodied carbon emissions from economic output in Sino-US trade possible?," Technological Forecasting and Social Change, Elsevier, vol. 169(C).
    14. Wang, Jianda & Dong, Kangyin & Sha, Yezhou & Yan, Cheng, 2022. "Envisaging the carbon emissions efficiency of digitalization: The case of the internet economy for China," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    15. Pothitou, Mary & Hanna, Richard F. & Chalvatzis, Konstantinos J., 2016. "Environmental knowledge, pro-environmental behaviour and energy savings in households: An empirical study," Applied Energy, Elsevier, vol. 184(C), pages 1217-1229.
    16. Xu, Xinkuo & Han, Liyan & Lv, Xiaofeng, 2016. "Household carbon inequality in urban China, its sources and determinants," Ecological Economics, Elsevier, vol. 128(C), pages 77-86.
    17. Liu, Wenling & Spaargaren, Gert & Heerink, Nico & Mol, Arthur P.J. & Wang, Can, 2013. "Energy consumption practices of rural households in north China: Basic characteristics and potential for low carbon development," Energy Policy, Elsevier, vol. 55(C), pages 128-138.
    18. Zhang, Xiaoling & Wang, Yue, 2017. "How to reduce household carbon emissions: A review of experience and policy design considerations," Energy Policy, Elsevier, vol. 102(C), pages 116-124.
    19. Shang, Yunfeng & Han, Ding & Gozgor, Giray & Mahalik, Mantu Kumar & Sahoo, Bimal Kishore, 2022. "The impact of climate policy uncertainty on renewable and non-renewable energy demand in the United States," Renewable Energy, Elsevier, vol. 197(C), pages 654-667.
    20. Ye, Bin & Jiang, JingJing & Li, Changsheng & Miao, Lixin & Tang, Jie, 2017. "Quantification and driving force analysis of provincial-level carbon emissions in China," Applied Energy, Elsevier, vol. 198(C), pages 223-238.
    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. Gao, Xue & Chen, Xuan & Liu, Lan-Cui, 2024. "Exploring the determinants of the evolution of urban and rural household carbon footprints inequality in China," Energy Policy, Elsevier, vol. 185(C).
    2. 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).
    3. Song, Xiaoling & Yao, Yumeng & Wu, Xueke, 2023. "Digital finance, technological innovation, and carbon dioxide emissions," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 482-494.
    4. 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.
    5. Li, Nan & Zhou, Yifan, 2024. "Can digital financial development promote corporate green technology innovation?," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 1562-1582.
    6. 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).
    7. 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.

    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. Xinkuo Xu & Liyan Han, 2017. "Diverse Effects of Consumer Credit on Household Carbon Emissions at Quantiles: Evidence from Urban China," Sustainability, MDPI, vol. 9(9), pages 1-25, September.
    2. Xiaoyu Liu & Xian’en Wang & Junnian Song & Haiyan Duan & Shuo Wang, 2019. "Why Are the Carbon Footprints of China’s Urban Households Rising? An Input–Output Analysis and Structural Decomposition Analysis," Sustainability, MDPI, vol. 11(24), pages 1-18, December.
    3. Li, Jun & Zhang, Dayong & Su, Bin, 2019. "The Impact of Social Awareness and Lifestyles on Household Carbon Emissions in China," Ecological Economics, Elsevier, vol. 160(C), pages 145-155.
    4. Charfeddine, Lanouar & Umlai, Mohamed, 2023. "ICT sector, digitization and environmental sustainability: A systematic review of the literature from 2000 to 2022," Renewable and Sustainable Energy Reviews, Elsevier, vol. 184(C).
    5. Xin Li & Xiaoqiong He & Xiyu Luo & Xiandan Cui & Minxi Wang, 2020. "Exploring the characteristics and drivers of indirect energy consumption of urban and rural households from a sectoral perspective," Greenhouse Gases: Science and Technology, Blackwell Publishing, vol. 10(5), pages 907-924, October.
    6. Olaniyan, Olanrewaju & Sulaimon, Mubaraq Dele & Ademola, Wasiu, 2018. "Determinants of household direct CO2 emissions: Empirical evidence from Nigeria," MPRA Paper 87801, University Library of Munich, Germany.
    7. Zhang, Yimeng & Wang, Feng & Zhang, Bing, 2023. "The impacts of household structure transitions on household carbon emissions in China," Ecological Economics, Elsevier, vol. 206(C).
    8. Yulin Liu & Min Zhang & Rujia Liu, 2020. "The Impact of Income Inequality on Carbon Emissions in China: A Household-Level Analysis," Sustainability, MDPI, vol. 12(7), pages 1-22, March.
    9. Ding, Qun & Cai, Wenjia & Wang, Can & Sanwal, Mukul, 2017. "The relationships between household consumption activities and energy consumption in china— An input-output analysis from the lifestyle perspective," Applied Energy, Elsevier, vol. 207(C), pages 520-532.
    10. Wang, Keying & Cui, Yongyan & Zhang, Hongwu & Shi, Xunpeng & Xue, Jinjun & Yuan, Zhao, 2022. "Household carbon footprints inequality in China: Drivers, components and dynamics," Energy Economics, Elsevier, vol. 115(C).
    11. Xi Chen & Yingying Zhen & Zhanming Chen, 2023. "Household Carbon Footprint Characteristics and Driving Factors: A Global Comparison Based on a Dynamic Input–Output Model," Energies, MDPI, vol. 16(9), pages 1-18, May.
    12. Zhen, Wei & Zhong, Zhangqi & Wang, Yichen & Miao, Lu & Qin, Quande & Wei, Yi-Ming, 2019. "Evolution of urban household indirect carbon emission responsibility from an inter-sectoral perspective: A case study of Guangdong, China," Energy Economics, Elsevier, vol. 83(C), pages 197-207.
    13. Rui Huang & Shaohui Zhang & Changxin Liu, 2018. "Comparing Urban and Rural Household CO 2 Emissions—Case from China’s Four Megacities: Beijing, Tianjin, Shanghai, and Chongqing," Energies, MDPI, vol. 11(5), pages 1-17, May.
    14. Yong Yang & Junsong Jia & Adam T. Devlin & Yangming Zhou & Dongming Xie & Min Ju, 2020. "Decoupling and Decomposition Analysis of Residential Energy Consumption from Economic Growth during 2000–2017: A Comparative Study of Urban and Rural Guangdong, China," Energies, MDPI, vol. 13(17), pages 1-21, August.
    15. Xibao Xu & Yan Tan & Shuang Chen & Guishan Yang & Weizhong Su, 2015. "Urban Household Carbon Emission and Contributing Factors in the Yangtze River Delta, China," PLOS ONE, Public Library of Science, vol. 10(4), pages 1-21, April.
    16. Tao Lin & Junna Yan, 2017. "Investigating the sensitivity factors of household indirect CO2 emission from the production side," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 88(2), pages 721-740, September.
    17. Hongwu Zhang & Lequan Zhang & Keying Wang & Xunpeng Shi, 2019. "Unveiling Key Drivers of Indirect Carbon Emissions of Chinese Older Households," Sustainability, MDPI, vol. 11(20), pages 1-17, October.
    18. Lina Liu & Jiansheng Qu & Afton Clarke-Sather & Tek Narayan Maraseni & Jiaxing Pang, 2017. "Spatial Variations and Determinants of Per Capita Household CO 2 Emissions (PHCEs) in China," Sustainability, MDPI, vol. 9(7), pages 1-19, July.
    19. Thøgersen, John, 2017. "Housing-related lifestyle and energy saving: A multi-level approach," Energy Policy, Elsevier, vol. 102(C), pages 73-87.
    20. Liu, Lan-Cui & Wu, Gang, 2013. "Relating five bounded environmental problems to China's household consumption in 2011–2015," Energy, Elsevier, vol. 57(C), pages 427-433.

    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:tefoso:v:190:y:2023:i:c:s0040162523000495. 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.sciencedirect.com/science/journal/00401625 .

    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.