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How does digital finance drive the green economic growth? New discoveries of spatial threshold effect and attenuation possibility boundary

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  • Pang, Si Lu
  • Liu, Hui
  • Hua, Gui Hong

Abstract

A spatial threshold model is constructed to examine the spatial threshold effect and attenuation possibility boundary of digital finance on green economic growth (GEG) under the theoretical framework. Results revealed that: (1) Digital finance has a significant single-threshold effect, with high-level digital finance having a stronger incentive effect on local GEG. (2) Digital finance's negative spillover effect on the surrounding GEG increases with an improvement in the former's level. (3) Digital finance's spatial spillover effect on GEG shows distance attenuation of volatility and an attenuation possibility boundary in both stages. (4) Green investment and enterprise emission fees are mechanisms which digital finance can boost GEG; however, it can suppress GEG by encouraging residential consumption.

Suggested Citation

  • Pang, Si Lu & Liu, Hui & Hua, Gui Hong, 2024. "How does digital finance drive the green economic growth? New discoveries of spatial threshold effect and attenuation possibility boundary," International Review of Economics & Finance, Elsevier, vol. 89(PA), pages 561-581.
    • Handle: RePEc:eee:reveco:v:89:y:2024:i:pa:p:561-581
    DOI: 10.1016/j.iref.2023.07.014
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