Does the development of digital finance have environmental governance effect? - empirical evidence from China

Based on panel data of 285 cities in China, we carry out an empirical test for the impact of digital finance development on urban environmental governance with a fixed-effects model. The results show that digital finance can significantly reduce urban pollutant emissions, suggesting a positive envir...

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Bibliographic Details
Published inApplied economics letters Vol. 30; no. 16; pp. 2276 - 2281
Main Authors Zhang, Yujuan, Ling, Xuan
Format Journal Article
LanguageEnglish
Published London Routledge 20.09.2023
Taylor & Francis LLC
Subjects
Cities
Digital finance
Economic analysis
environmental effect
environmental governance
environmental pollution
Finance
Governance
Panel data
Robustness
China
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Summary:Based on panel data of 285 cities in China, we carry out an empirical test for the impact of digital finance development on urban environmental governance with a fixed-effects model. The results show that digital finance can significantly reduce urban pollutant emissions, suggesting a positive environmental governance effect. After using an instrumental variable and a lagged response variable to test the robustness of the results, the conclusion still holds. Through further analysis, we find that for cities in the central and western regions and cities with a higher degree of green finance development, the environmental governance effect of digital finance is more significant. This paper enriches research on the economic consequences of digital finance and provides empirical evidence for the positive environmental effect of digital finance.
ISSN:1350-4851
1466-4291
DOI:10.1080/13504851.2022.2096856