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Digital finance, natural resource constraints and firms' low-carbon behavior: Evidence from listed companies

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Listed:
  • Yang, Ping
  • Lv, Yanqin
  • Chen, Xiaodan
  • Lv, Juan

Abstract

Digital finance is pivotal in a company's environmentally responsible practices. Given this, we examine the impact of digital finance on firm's carbon emissions using a fixed-effect model using A-share listed companies data from 2011 to 2020. The results report that digital finance significantly dampens a firm's carbon emissions, and a similar effect is observed in the breadth of coverage and digital finance depth of use. Distinguishing the characteristics of firms' samples reveals that the carbon abatement effect resulting from digital finance is more evident in non-state-owned enterprises, remains significant in capital-intensive, technology-intensive industries as well as in manufacturing, yet is insignificant in labour-intensive and non-manufacturing industries. Promoting environmental, social and governance, facilitating digital transformation and incentivizing green innovation are significant digital finance-driven carbon abatement mechanisms. Digital finance's carbon-cutting effect is amplified further by financial regulation constraints and natural resource constraints.

Suggested Citation

  • Yang, Ping & Lv, Yanqin & Chen, Xiaodan & Lv, Juan, 2024. "Digital finance, natural resource constraints and firms' low-carbon behavior: Evidence from listed companies," Resources Policy, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:jrpoli:v:89:y:2024:i:c:s0301420724000047
    DOI: 10.1016/j.resourpol.2024.104637
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    1. Wang, Zongrun & Cao, Xuxin & Ren, Xiaohang & Gozgor, Giray, 2024. "Digital finance and the energy transition: Evidence from Chinese prefecture-level cities," Global Finance Journal, Elsevier, vol. 61(C).

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