The Impact of Digital Finance Development on CO2 Emissions in China

Abstract

The problem of environmental pollution caused by massive CO 2 emissions is becoming increasingly serious. As an environment-friendly financial service, digital finance is conducive to the development of a low-carbon economy. Based on the panel data of 287 cities in China from 2011 to 2019, this paper uses a two-way fixed-effect model and an intermediary model to study the impact of digital finance on carbon emissions. The empirical analysis results show that: in the whole of China, digital finance has an obvious effect on reducing carbon dioxide emission intensity; the impact of digital finance on carbon emission intensity has regional heterogeneity, and the development of digital finance in eastern China can play a significant role in reducing carbon dioxide emissions. The impact of digital finance on carbon emission intensity is dimensionally heterogeneous, and the development of the usage depth of digital finance and the digitization level can reduce carbon emission intensity; technological progress plays a partial intermediary role in the process of digital finance affecting carbon emissions. Digital finance can drive low-carbon development by promoting the optimization and upgrading of technology. Based on the above conclusions, this paper puts forward corresponding sug-gestions for the development of China’s green and low-carbon economy.