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Digital Economy, Green Finance, and Carbon Emissions: Evidence from China

Author

Listed:
  • Weibo Jin

    (Business School, Qingdao University of Technology, Qingdao 266520, China)

  • Yiming Wang

    (Business School, Qingdao University of Technology, Qingdao 266520, China)

  • Yi Yan

    (Business School, Qingdao University of Technology, Qingdao 266520, China)

  • Hongyan Zhou

    (Business School, Qingdao University of Technology, Qingdao 266520, China)

  • Longyu Xu

    (Business School, Qingdao University of Technology, Qingdao 266520, China)

  • Yi Zhang

    (Business School, Qingdao University of Technology, Qingdao 266520, China)

  • Yao Xu

    (Business School, Qingdao University of Technology, Qingdao 266520, China
    Business School, Nanjing Normal University, Nanjing 210023, China)

  • Yuqi Zhang

    (Business School, Qingdao University of Technology, Qingdao 266520, China)

Abstract

This paper investigates the role of the digital economy in reducing carbon emissions, with a particular focus on the moderating and threshold effects of green finance. An analysis of data from 30 Chinese provinces shows that the digital economy significantly reduces carbon emission intensity by restructuring energy consumption and promoting green technological innovation. Green finance plays a crucial moderating role by alleviating financial barriers to digital transformation and supporting the implementation of emission-reducing technologies. The study reveals a nonlinear relationship, with green finance exhibiting a “strong initial, weak subsequent” threshold effect. At the same time, the digital economy’s impact on carbon reduction strengthens over time as technological development progresses. These findings contribute to understanding how digitalisation and green finance can work synergistically to drive sustainable low-carbon development.

Suggested Citation

  • Weibo Jin & Yiming Wang & Yi Yan & Hongyan Zhou & Longyu Xu & Yi Zhang & Yao Xu & Yuqi Zhang, 2025. "Digital Economy, Green Finance, and Carbon Emissions: Evidence from China," Sustainability, MDPI, vol. 17(12), pages 1-31, June.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:12:p:5625-:d:1682089
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    Cited by:

    1. Kakar, Shayan Khan & Wang, Jing & Arshed, Noman & Abdullahi, Nazir Muhammad & Ali, Javid, 2025. "Navigating the nexus of renewable energy, industrialization, financial technology, and carbon emissions: An in-depth analysis and policy framework," Technology in Society, Elsevier, vol. 83(C).
    2. Ziqian Zhao & Decai Tang & Jiannan Li, 2025. "Driving role of digital finance on economic resilience: threshold effects of industrial structure upgrading and social security," Economic Change and Restructuring, Springer, vol. 58(6), pages 1-43, December.
    3. Xu, Aiting & Dai, Yujie & Hu, Zhiyuan, 2025. "Green finance innovation and corporate resilience: Evidence from China's reform pilot zones," Research in Economics, Elsevier, vol. 79(4).
    4. Dianwu Wang & Zina Yu & Haiying Liu & Xianzhe Cai & Zhiqun Zhang, 2025. "Exploring the Relationship Between Green Finance and Carbon Productivity: The Mediating Role of Technological Progress Bias," Sustainability, MDPI, vol. 17(19), pages 1-18, September.

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