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Can digital financial inclusion promote the coupling coordination between pollution reduction and low-carbon development? Evidence from China

Author

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  • Zhang, Yuxi
  • Cheung, Adrian (Wai Kong)
  • Qu, Xiaodong
Abstract
Pollution reduction and low-carbon development are two specific but intertwined goals of addressing climate change and sustainable development of the United Nations in 2030, and the effective use of digital financial inclusion is imperative for driving technical innovation, upgrading industrial structure, and addressing climate change. Therefore, this paper investigates the impact of digital financial inclusion on the coupling coordination between pollution reduction and low-carbon development using a panel dataset of 30 China's provinces from 2011 to 2020. The results show that the coupling coordination between pollution reduction and low-carbon development in China improves significantly during the sample period. The synergistic effect of different economic zones and provinces varies greatly in space and time. In addition, digital financial inclusion has a promoting effect on the coupling coordination of pollution and carbon emission reduction. A mechanism analysis also reveals that technological innovation, industrial structure and energy consumption are the core transmission channels through which digital financial inclusion influences the synergistic effect of pollution and carbon emission reduction. This suggests that the need of coordinated governance by policymakers is warranted, and digital financial inclusion is an important way to this coordinated governance.

Suggested Citation

  • Zhang, Yuxi & Cheung, Adrian (Wai Kong) & Qu, Xiaodong, 2024. "Can digital financial inclusion promote the coupling coordination between pollution reduction and low-carbon development? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 1113-1130.
    • Handle: RePEc:eee:ecanpo:v:82:y:2024:i:c:p:1113-1130
    DOI: 10.1016/j.eap.2024.05.007
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    More about this item

    Keywords

    Digital financial inclusion; Pollution reduction and low-carbon development; Coupling coordination degree model; Mediating effect;
    All these keywords.

    JEL classification:

    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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