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What drives pollution reduction and carbon alleviation in China’s cities? The spatial role of digital financial inclusion

Author

Listed:
  • Jun Zhao
  • Yalin Lei
  • Xiaomeng Zhao
  • Qingzhe Jiang
  • Xiaojun Sun

Abstract

This study tests the spatial spillover influence of digital financial inclusion (DFI) on pollution reduction and carbon alleviation (PRCA). Moreover, the mechanism role of energy efficiency and the social consequence of DFI are also explored. We find that (1) enhanced DFI can effectively stimulate the cooperative effect of PRCA, including carbon emissions and haze pollution; however, the impact of DFI on carbon reduction is substantially greater than that of haze reduction. (2) While promoting PRCA in the city, the development of DFI cannot effectively stimulate the cooperative effect of PRCA in neighboring cities. And (3) energy efficiency is an effective mechanism route, and the advancement of DFI will decrease the residents’ wage level.

Suggested Citation

  • Jun Zhao & Yalin Lei & Xiaomeng Zhao & Qingzhe Jiang & Xiaojun Sun, 2025. "What drives pollution reduction and carbon alleviation in China’s cities? The spatial role of digital financial inclusion," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 23(4), pages 623-648, October.
    • Handle: RePEc:taf:jocebs:v:23:y:2025:i:4:p:623-648
    DOI: 10.1080/14765284.2025.2480016
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