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Title The Role Of Digital Finance On The Synergistic Governance Of Pollution & Carbon: Evidence From Chinese Cities
ID_Doc 56531
Authors Li Z.; Yuan B.; Wang Y.; Qian J.; Wu H.
Year 2024
Published Sustainable Cities and Society, 115
DOI http://dx.doi.org/10.1016/j.scs.2024.105812
Abstract Amid the challenges of frequent extreme climate events and economic recession, digital financial inclusion has emerged as a significant driver of urban green economic growth and a tool for sustainable development. This study presents a theoretical framework to examine the impact of digital financial inclusion on the synergistic governance of pollution and carbon. We employ ordinary least squares, instrumental variable methods, and a dynamic spatial Durbin model to analyze data from 278 cities in China, covering the period from 2011 to 2019. The results indicate a significant U-shaped relationship between digital financial inclusion and the efficiency of synergistic governance of pollution and carbon. Key drivers include entrepreneurial activities, green technology innovation, and industrial structural upgrades. Interestingly, the influence of digital financial inclusion in neighboring regions on governance efficiency follows an inverted U-shaped pattern. Further analysis shows that digital financial inclusion has been more effective in reducing pollution and carbon emissions in non-resource-based cities and post-2015. Moreover, policies such as “Smart City,” “Technology-Finance Integration,” and “Carbon Emissions Trading” have positively impacted the capabilities of digital financial inclusion in these areas. Conversely, the “Low-carbon City” pilot has not yet shown a significant effect. This study broadens the understanding of the mechanisms behind the synergistic governance of pollution and carbon and offers policy recommendations for China and other developing countries to enhance urban green economic growth through digital financial inclusion. © 2024 Elsevier Ltd
Author Keywords Digital financial inclusion; Entrepreneurial activity; Green technology innovation; Synergistic governance efficiency of pollution and carbon


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