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Impact of Digital Finance on Regional Carbon Emissions: An Empirical Study of Sustainable Development in China

Author

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  • Qiutong Xue

    (School of Business, Nanjing Normal University, Nanjing 210023, China)

  • Sixian Feng

    (School of Business, Nanjing Normal University, Nanjing 210023, China
    Ginlin College, Nanjing Normal University, Nanjing 210023, China)

  • Kairan Chen

    (School of Business and Management, Queen Mary University of London, London E1 4NS, UK)

  • Muchen Li

    (School of Finance and Economics, Jimei University, Xiamen 361021, China)

Abstract

China is currently in the process of industrialization, and the excessive consumption of fossil energy results in a significant increase in carbon emissions. With the significant development of information technology and the digital economy, digital finance has gradually become a new model that affects human activities, motivating us to explore the relationship between digital finance and carbon emissions. Based on panel data from 278 cities from 2011 to 2019, this study empirically analyzes the relationship between digital finance and carbon emissions and discusses it in terms of the nonlinearity, regional heterogeneity, and spatial spillover effects. We find empirical evidence indicating that digital finance can mitigate regional carbon emissions. Finally, we propose some relevant suggestions for promoting sustainable and healthy development of digital finance, and achieving carbon emissions reduction.

Suggested Citation

  • Qiutong Xue & Sixian Feng & Kairan Chen & Muchen Li, 2022. "Impact of Digital Finance on Regional Carbon Emissions: An Empirical Study of Sustainable Development in China," Sustainability, MDPI, vol. 14(14), pages 1-26, July.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:14:p:8340-:d:857940
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