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Rural Inclusive Finance and Agricultural Carbon Reduction: Evidence from China

Author

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  • Jizhi Li

    (Shandong University of Finance and Economics)

  • Qi Jiang

    (Shandong University of Finance and Economics)

Abstract

The continuous improvement of global carbon emissions has increased the vulnerability of regional ecosystems. Exploring the relationship between rural inclusive finance and agricultural carbon emission reduction is crucial to achieving the strategic goal of sustainable development. This paper empirically analyzes the effect of rural inclusive finance on agricultural carbon emission reduction using balanced panel data for 30 Chinese provinces from 2010 to 2021. The research findings are as follows: (1) Rural inclusive finance can significantly promote agricultural carbon reduction, mainly through the effects of agricultural technological progress, redistribution of production factors, and pollution mitigation. (2) Rural inclusive finance has a spatial spillover effect, which can accelerate agricultural carbon emission reduction in surrounding areas. (3) The positive effect of rural inclusive finance on agricultural carbon emission reduction is more obvious in eastern regions and major grain-producing areas, with significant regional heterogeneity. This study deepens the understanding of the internal effects and regional linkages of rural inclusive finance empowering agricultural carbon emission reduction.

Suggested Citation

  • Jizhi Li & Qi Jiang, 2025. "Rural Inclusive Finance and Agricultural Carbon Reduction: Evidence from China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(2), pages 9806-9829, June.
    • Handle: RePEc:spr:jknowl:v:16:y:2025:i:2:d:10.1007_s13132-024-02261-9
    DOI: 10.1007/s13132-024-02261-9
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