Digital finance, environmental regulation, and green development efficiency of China

Frontiers in Environmental Science

Environmental Science

Qiangqiang Wang¹  Yaqing Han²  Yushui Li² 

[1] College of Economics and Management, Fujian Agriculture and Forestry University, Fuzhou, China;School of Finance, Fujian Jiangxia University, Fuzhou, China;Fujian Social Science Research Base, Financial Risk Management Research Center of Fujian Jiangxia University, Fuzhou, China;

关键词: digital finance;    environmental regulation;    green development efficiency;    dynamic panel GMM model;    Economic Transformation;   

DOI  :  10.3389/fenvs.2023.1131058

 received in 2022-12-24, accepted in 2023-01-20,  发布年份 2023

来源: Frontiers

【 摘 要 】

In the context of the increasingly prominent contradiction between economic development and ecological environment, how to promote green development has become the core of sustainable economic development. Digital finance is an innovative financial model with a high degree of integration of finance and digital technology and provides a new opportunity for achieving green development. Based on identifying the mechanisms of digital finance and environmental regulation on green development efficiency, this research uses the directional distance function and Malmquist-Luenberger index to measure the green development efficiency of 30 provinces in China from 2011 to 2020 and then employs a dynamic panel GMM model to empirically analyze the relationships among digital finance, environmental regulation, and green development efficiency. The results of the study show the following. 1) Digital finance contributes to the efficiency improvement of green development. 2) Environmental regulation has not yet crossed the Porter’s inflection point and still has a dampening effect on green development efficiency. 3) The synergy between digital finance and environmental regulation has a positive impact on green development. 4) Digital finance alleviates the financing constraints arising from environmental regulation and to some extent weakens the negative effect of environmental regulation on the efficiency of green development. In view of this, the government should give full play to the active role of digital finance in eco-environmental governance, optimize the top-level design of environmental regulation, and promote industrial structure upgrading and optimal allocation of financial resources.

【 授权许可】

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Copyright © 2023 Han, Li and Wang.