Can Regional New Digital Infrastructure Promote the Level of Green Finance? Empirical Evidence from Chinese Cities

Using panel data for 135 Chinese prefecture-level cities from 2007 to 2023, this study investigates the impact of new digital infrastructure on green finance development. The new digital infrastructure indicator is constructed based on the proportion of relevant keywords appearing in government work reports, while the green finance index is reconstructed using the entropy-weighting method across seven dimensions. The estimation results indicate that new digital infrastructure exerts a significant positive effect on green finance development. This conclusion remains robust after a series of robustness checks, including alternative variable measurements, winsorization treatment, and instrumental-variable estimation. Mechanism analysis reveals that industrial structure upgrading, particularly the advancement of industrial structure, serves as an important transmission channel. Further heterogeneity analysis shows that the promoting effect is more pronounced in cities with larger economic scale, those located outside major urban agglomerations, and cities with higher levels of financial resource aggregation. These findings provide empirical evidence for the role of digital infrastructure in fostering green finance and facilitating sustainable regional development.