Digital finance and sustainable development: Evidence from environmental inequality in China

Abstract

Achieving environmental equity is important for ensuring resource utilization efficiency and realizing sustainable development. Using panel data of 286 cities in China from 2011 to 2018, this paper analyzes whether financial support in the form of digital finance can mitigate environmental inequality. The findings indicate that (1) digital finance has a significant mitigating effect on environmental inequality. Digital finance development has a stronger industrial pollution emission reduction effect on high‐polluting regions than on low‐polluting regions and can reduce the environmental pollution gap between regions. The results of robustness tests such as an endogeneity test support this finding. (2) Digital finance development can have a stronger mitigating effect on environmental inequality in regions with a stronger local government governance capacity and environmental preferences. Digital finance can be a more significant inhibitor of environmental inequality in areas where industries transfer out due to their stronger needs for industrial transformation and finance. (3) Residential income and green technology innovation are important factors affecting industrial pollution emissions and reductions. Digital finance development can narrow the income gap between regions and promote the convergence of green technology innovation capacity, in turn alleviating environmental inequality. In the future, while continuing to promote the development of digital finance, it is necessary to improve the governance capacity of local governments, to increase the efficiency of resource utilization in places where industrial transfer is undertaken and to strengthen the role of financial support in industrial pollution control.

Does the construction of network infrastructure reduce environmental pollution?—evidence from a quasi-natural experiment in “Broadband China”

“…From a microperspective, the development of the digital economy has accelerated the flow of factors and improved resource utilization and allocation efficiency, which is the best embodiment of green development. From a macroperspective, the digital economy promotes technological innovation and industrial structure upgrading, effectively improving production efficiency and enabling high-quality development (Li et al, 2022 ). However, the existing literature lacks a direct assessment of the environmental pollution caused by the digital economy, which provides an opportunity for further research on this topic in this paper.…”

Green technology innovation and carbon emissions nexus in China: Does industrial structure upgrading matter?

“…To control for additional interfering factors of the dependent variable, referring to Zhong et al ( 2021 ) and Li et al ( 2022 ); this article introduces control variables, which include economic development level ( Pgdp ), urbanization ( Urban ), foreign direct investment ( Fdi ), environmental protection ( Ep ), and local fiscal expenditure level ( Fe ). Economic development is coupled with deepening industrialization, which is one of the major triggers of carbon emissions.…”

“…Nevertheless, underlying the high-speed growth, its environmental carrying capacity is increasingly strained (Abbasi et al, 2022 ). Moreover, a development model that ignores environmental considerations by depending on high inputs and the high energy consumption is intolerable, with carbon emissions in China close to 30% of the global carbon emissions (Li et al, 2022 ; Zhao S. et al, 2022 ; Zhao W. et al, 2022 ). The climate challenges induced by high energy consumption, high pollution, and increased carbon emissions are not only limited to local development challenges but also the cross-border nature of carbon emissions, which constitute a joint problem worldwide at present (Godil et al, 2021 ; Huo et al, 2022 ; Rehman et al, 2022 ).…”

Wage Gaps in Energy Industry: The Role of Sector

“…Xiao et al (2022) urged the government to adopt differentiated environmental policies for low-income and high-income groups. Li G et al (2022) proved that the development of digital finance promotes the integration of green technology innovation capabilities, thereby alleviating environmental inequality. (2004, 2008, and 2013).…”