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Does digital inclusive finance promote carbon emission reduction of enterprises

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  • Yu Peng
  • Ying Qiu
  • You Li
  • Xinwan Peng

Abstract

Can the information technology revolution lead to carbon emission reduction for firms? This study extends the limited evidence in the literature and investigate the role and mechanism of digital inclusive finance on enterprises’ carbon emissions using panel data of 247 prefectural-level cities and 6019 industrial enterprises in China. Our findings indicate that digital inclusive finance can promote enterprise carbon emission reduction, and this effect remains significant after the instrumental variable estimation test. The effect has regional heterogeneity and the development of digital inclusive finance in the area east of Hu Huanyong line has a significant impact on reducing enterprise carbon emission. The role of digital inclusive finance is heterogeneous in enterprise ownership, with a remarkable effect in non-state-owned enterprises. Sub-dimension analysis indicates that the breadth of coverage, depth of use, and degree of digitalization of digital inclusive finance have differential effects on reducing enterprise carbon emissions. The stepwise regression method shows that the impact of digital inclusive finance on enterprise carbon emissions can be passed through effect of technological progress, environmental protection investment and financing constrain. This study has significant reference value for evaluating the impact of financial inclusion and policy implications in formulating differentiated strategies for achieving carbon emission reduction efficiency in enterprises.

Suggested Citation

  • Yu Peng & Ying Qiu & You Li & Xinwan Peng, 2024. "Does digital inclusive finance promote carbon emission reduction of enterprises," PLOS ONE, Public Library of Science, vol. 19(7), pages 1-24, July.
    • Handle: RePEc:plo:pone00:0302826
    DOI: 10.1371/journal.pone.0302826
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    References listed on IDEAS

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    1. Alun Gu & Fei Teng & Xiangzhao Feng, 2018. "Effects of pollution control measures on carbon emission reduction in China: evidence from the 11th and 12th Five-Year Plans," Climate Policy, Taylor & Francis Journals, vol. 18(2), pages 198-209, February.
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    3. Mostafaeipour, Ali & Bidokhti, Abbas & Fakhrzad, Mohammad-Bagher & Sadegheih, Ahmad & Zare Mehrjerdi, Yahia, 2022. "A new model for the use of renewable electricity to reduce carbon dioxide emissions," Energy, Elsevier, vol. 238(PA).
    4. Lee, Chien-Chiang & Wang, Fuhao, 2022. "How does digital inclusive finance affect carbon intensity?," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 174-190.
    5. Xuanming Ji & Kun Wang & He Xu & Muchen Li, 2021. "Has Digital Financial Inclusion Narrowed the Urban-Rural Income Gap: The Role of Entrepreneurship in China," Sustainability, MDPI, vol. 13(15), pages 1-18, July.
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    Cited by:

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    2. Gao, Zhiyuan & Zhu, Yingnan & Wei, Yihang & Hao, Yu, 2025. "The green circuit: Tracing digital inclusive finance's role in sustainable urban development," Research in International Business and Finance, Elsevier, vol. 76(C).

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