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Does the Development of Digital Finance Contribute to Haze Pollution Control? Evidence from China

Author

Listed:
  • Ke-Liang Wang

    (School of Economics, Ocean University of China, Qingdao 266011, China)

  • Rui-Rui Zhu

    (School of Economics, Ocean University of China, Qingdao 266011, China)

  • Yun-He Cheng

    (School of Economics and Management, Anhui University of Science and Technology, Huainan 232011, China)

Abstract

Mitigating haze pollution is of practical significance to the green economy, and the development of digital finance may help achieve this goal. However, the effect of digital finance on haze pollution has not been systematically explained. Based on Chinese prefectural panel data for the 2011–2016 period, this study on haze concentration, technological innovation, and digital inclusive finance index as the dependent variable, mediating variable, and the core independent variable, respectively, investigated whether digital finance has improved haze pollution control in China using fixed effect (FE) and random effect (RE) models, a mediating effect model, a threshold panel model, and a dynamic spatial Durbin model (SDM). Four key results were obtained. (1) Digital finance significantly decreased haze pollution. After accounting for potential endogeneity, this conclusion was still valid. (2) The analysis of the influencing mechanism showed that digital finance was conducive to haze reduction by promoting regional innovation capabilities. (3) There was a nonlinear relationship between the influence of digital finance and haze pollution. Specifically, the impact of digital finance on haze pollution has gradually increased with the improvement of regional innovation capabilities. (4) Haze pollution displayed a significant positive spatial agglomeration in China. Digital finance can alleviate local haze pollution but will aggravate haze pollution in adjacent areas. Based on the results of this study, some pertinent policy suggestions were proposed.

Suggested Citation

  • Ke-Liang Wang & Rui-Rui Zhu & Yun-He Cheng, 2022. "Does the Development of Digital Finance Contribute to Haze Pollution Control? Evidence from China," Energies, MDPI, vol. 15(7), pages 1-21, April.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:7:p:2660-:d:787370
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    5. Fu, Shuke & Ge, Yingchen & Hao, Yu & Peng, Jiachao & Tian, Jiali, 2024. "Energy supply chain efficiency in the digital era: Evidence from China's listed companies," Energy Economics, Elsevier, vol. 134(C).
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    7. Ying Yu & Qian Zhang & Fan Song, 2023. "Non-Linear Impacts and Spatial Spillover of Digital Finance on Green Total Factor Productivity: An Empirical Study of Smart Cities in China," Sustainability, MDPI, vol. 15(12), pages 1-22, June.
    8. Unzule Kurt & Cuneyt Kilic & Ahmet Tayfur Akcan, 2024. "Does Internet Use Affect Air Pollution? Evidence from OECD Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 235-246, May.
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