Towards low-carbon development through integration of technology and finance: Quasi-experimental evidence from China

While the critical roles of technology and finance in pollution abatement have been empirically ascertained, the synergistic effects of their integration on carbon mitigation and carbon marginal abatement costs (CMAC) of carbon remain underexplored in existing literature. In this paper, we first treat the scientific-technological and finance pilot policy (STFPP) as a quasi-experimental, and identify its effects on carbon emissions and CMAC using the staggered difference-in-differences strategy. Empirical findings show that the STFPP leads to a 5.2% decrease in carbon emissions alongside a reduction in CMAC by 1520 RMB per ton. It is also found that STFPP has a pronounced effect in reducing carbon emissions through three mechanisms: strengthening carbon reduction policy intensity, promoting green technological innovation, and facilitating integration of digital and real economies. This investigation not only constructs a theoretical scaffold but also provides empirical evidence that elucidates the specific mechanisms by which STFPP can effectively decrease both carbon emissions and CMAC. Our paper provides a practical basis for reinforcing the role of STFPP in environmental governance, equipping policymakers with valuable insights for strategic decision-making.