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Can Digital Finance Promote Peak Carbon Dioxide Emissions? Evidence from China

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  • Mao Wu

    (School of Economics and Management, Northwest University, Xi’an 710127, China
    These authors contributed equally to this work.)

  • Jiayi Guo

    (School of Environment and Spatial Informatics, China University of Mining and Technology, Xuzhou 221116, China
    These authors contributed equally to this work.)

  • Hongzhi Tian

    (School of Economics and Management, Northwest University, Xi’an 710127, China)

  • Yuanyuan Hong

    (School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing 210044, China)

Abstract

This paper uses Chinese provincial panel data from 2011 to 2019, measures CO 2 emissions of provinces in China using the IPCC method, and explores the impact of digital finance on CO 2 emissions through the SAR model and SDM. Empirical study shows that digital finance significantly reduces CO 2 emissions. Digital finance reduces CO 2 emissions by promoting energy industrial structure transformation and spreads to surrounding areas through spillover effects, contributes to increasing green patents granted and thus reduces regional CO 2 emissions, advances the green technological progress and therefore inhibits CO 2 emissions, but reduces the green technological progress in surrounding areas and increases CO 2 emissions due to the siphon effect. With the development of digital finance itself, the higher the level of financial regulation, green development and the green finance index, the better the effect of digital finance on CO 2 emission reduction. Additionally, digital finance significantly reduces CO 2 emissions in the south of China.

Suggested Citation

  • Mao Wu & Jiayi Guo & Hongzhi Tian & Yuanyuan Hong, 2022. "Can Digital Finance Promote Peak Carbon Dioxide Emissions? Evidence from China," IJERPH, MDPI, vol. 19(21), pages 1-21, November.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:21:p:14276-:d:960521
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    References listed on IDEAS

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    Cited by:

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    2. Qi He & Hongli Jiang, 2024. "Digital Inclusive Finance, Digital Technology Innovation, and Carbon Emission Intensity," Sustainability, MDPI, vol. 16(15), pages 1-26, July.
    3. Hanjin Li & Hu Tian & Xinyu Liu & Jiansheng You, 2024. "Transitioning to low-carbon agriculture: the non-linear role of digital inclusive finance in China’s agricultural carbon emissions," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    4. Song, Xiaoling & Yao, Yumeng & Wu, Xueke, 2023. "Digital finance, technological innovation, and carbon dioxide emissions," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 482-494.
    5. Gao, Feng & He, Ziwen, 2024. "Digital economy, land resource misallocation and urban carbon emissions in Chinese resource-based cities," Resources Policy, Elsevier, vol. 91(C).
    6. Yingzi Chen & Wanwan Yang & Yaqi Hu, 2022. "Internet Development, Consumption Upgrading and Carbon Emissions—An Empirical Study from China," IJERPH, MDPI, vol. 20(1), pages 1-23, December.

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