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Digital finance and air pollution in China: Evolution characteristics, impact mechanism and regional differences

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  • Tang, Yunfeng
  • Zhang, Xuan
  • Lu, Shibao
  • Taghizadeh-Hesary, Farhad

Abstract

To improve resource efficiency, this paper selects 31 provincial panel data of China from 2011 to 2021 to empirically test the spatial impact of digital finance on air pollution. The results show that: (1) China's air pollution has gradually decreased and regional differences have gradually narrowed. The development of digital finance has gradually increased and regional differences have gradually expanded. Both exhibit clear global spatial dependence and local spatial agglomeration. (2) Digital finance has a significant negative direct impact and a negative spatial spillover effect on air pollution. The coverage breadth of digital finance has the most significant impact. (3) There is a negative direct impact in the eastern region and a negative spatial spillover effect in the central region. The western region has a positive direct impact and a negative spatial spillover effect. This paper provides a new perspective for coordinating financial development and environmental protection.

Suggested Citation

  • Tang, Yunfeng & Zhang, Xuan & Lu, Shibao & Taghizadeh-Hesary, Farhad, 2023. "Digital finance and air pollution in China: Evolution characteristics, impact mechanism and regional differences," Resources Policy, Elsevier, vol. 86(PA).
    • Handle: RePEc:eee:jrpoli:v:86:y:2023:i:pa:s0301420723007845
    DOI: 10.1016/j.resourpol.2023.104073
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    1. Chi, Guodong & Liu, Yuanyuan & Fang, Hong, 2024. "Does environmental management system reform improve air quality? Quasi-experimental evidence from China," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 45-62.

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