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Has Digital Financial Inclusion Curbed Carbon Emissions Intensity? Considering Technological Innovation and Green Consumption in China

Author

Listed:
  • Ao Yang

    (Henan University of Technology
    Management and Science University)

  • Mao Yang

    (Sias University)

  • Fuyong Zhang

    (Henan University of Technology)

  • Aza Azlina Md Kassim

    (Management and Science University)

  • Peixu Wang

    (Henan University of Technology
    Management and Science University)

Abstract

Humans and nature are a community of destiny, and carbon emission intensity (CEI) affects the economy’s and environment’s sustainable development. With the transformation of traditional finance and the advent of big data, digital inclusive finance (DFI) plays an increasingly important role in coping with carbon emission reduction. Based on China’s local data from 2011 to 2022, this paper uses panel intermediary, threshold effect, and spatial econometric models to test the impact of DFI on CEI. The main research conclusions include the following: (1) DFI, breadth of digital financial inclusion (DFI_B), depth of use of digital financial inclusion (DFI_D), and degree of digitalization (DIG) can significantly inhibit provincial CEI. Among them, DFI_D has a more significant inhibitory effect on CEI. (2) The intermediary effect model proved that DFI could reduce regional CEI by improving technological innovation and green consumption levels. (3) The heterogeneity test found that DFI in the central and western provinces has a more significant inhibitory effect on CEI. (4) Further research found a single threshold effect on the influence of DFI and economic development level on CEI. (5) The spatial Durbin model (SDM) found that DFI and CEI have positive spillover spatial effects. In addition, DFI can significantly suppress local CEI and improve the surrounding areas’ CEI. The results will help enrich the research on the application of DFI to CEI and provide empirical evidence for better implementing carbon emission reduction and building a beautiful China.

Suggested Citation

  • Ao Yang & Mao Yang & Fuyong Zhang & Aza Azlina Md Kassim & Peixu Wang, 2024. "Has Digital Financial Inclusion Curbed Carbon Emissions Intensity? Considering Technological Innovation and Green Consumption in China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 19127-19156, December.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:4:d:10.1007_s13132-024-01902-3
    DOI: 10.1007/s13132-024-01902-3
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