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Digital Finance, Environmental Regulation, and Green Technology Innovation: An Empirical Study of 278 Cities in China

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  • Yiqun Hu

    (School of Business Administration, China University of Petroleum-Beijing at Karamay, Karamay 834000, China)

  • Xiong Dai

    (School of Business Administration, China University of Petroleum-Beijing at Karamay, Karamay 834000, China)

  • Li Zhao

    (School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China)

Abstract

Digital finance provides a premises guarantee for green technology innovation, and effective environmental regulation helps to achieve green and sustainable development. This article selects Chinese urban panel data from 2011 to 2019 to explore the impact mechanism of the influence of digital finance and environmental regulation on the innovation capacity of green science and technology. It is found that extensive financing channels and the strong information-matching ability of digital finance have a significant promoting effect on local green science and technology innovation. Moreover, government environmental regulation not only facilitates the development of green technology innovation locally and in nearby regions, but also strengthens the utility of digital finance in driving green science and technology innovation. Further research found that the influence of digital finance and environmental regulation on the ability of green science and technology innovation has regional heterogeneity, and only digital finance in Central China can promote green science and technology innovation in both local and adjacent areas. Therefore, the government should continue to promote the development of digital finance, optimize environmental regulations by increasing environmental protection subsidies and creating a green innovation environment, and further stimulate willingness to innovate green technologies. At the same time, it is also important to note the coordinated development and governance with neighboring regional governments.

Suggested Citation

  • Yiqun Hu & Xiong Dai & Li Zhao, 2022. "Digital Finance, Environmental Regulation, and Green Technology Innovation: An Empirical Study of 278 Cities in China," Sustainability, MDPI, vol. 14(14), pages 1-17, July.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:14:p:8652-:d:863168
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    7. Liu, Fangying & Su, Chi Wei & Tao, Ran & Qin, Meng & Umar, Muhammad, 2024. "Fintech and aluminium: Strategic enablers of climate change mitigation and sustainable mineral policy," Resources Policy, Elsevier, vol. 91(C).
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