Digital financial development, synergistic reduction of pollution, and carbon emissions: evidence from biased technical change

Digital transformation and synergistic reduction in pollution and carbon Emissions--An analysis from a dynamic capability perspective

Pollution control and carbon emission reduction pose significant challenges for developing countries, and achieving synergistic reductions in pollution and carbon emissions (SRPCs) has emerged as the optimal choice. Digitization, a prevailing trend in the current era, presents new opportunities for realizing the SRPC. We utilize data from Chinese A-share listed companies from 2007 to 2022 to investigate the impact of corporate digital transformation on the SRPC. The research reveals the following. (1) Enterprise digital transformation significantly promotes the SRPC, a conclusion validated through a series of robustness tests. However, the SRPC resulting from digital transformation is characterized by weak synergy, which is primarily observed in the coordinated reduction in air pollution and carbon emissions. (2) This effect is notably stronger for companies near environmental regulatory authorities, those receiving government environmental subsidies, and state-owned enterprises (SOEs). (3) Enhancing managerial collaborative management capabilities, promoting corporate technological innovation capabilities, and alleviating financing pressure are the primary mechanisms at play. This research provides important policy and practical insights for promoting the SRPC in the context of digitization, fostering sustainable development.

The impact of digital inclusive finance on the collaborative reduction of pollutant and carbon emissions: spatial spillover and mechanism analysis

In light of the escalating global climate risks threatening human survival, there is a global consensus on the necessity for collaborative reduction of pollutant and carbon emissions (CRPC). Within this context, digital inclusive finance (DIF) is recognized for its unique inclusiveness and digital characteristics as a critical factor in promoting environmentally friendly and sustainable development. DIF provides advantageous channels for environmental governance, thereby making the achievement of CRPC objectives feasible. However, the impact of DIF on CRPC has not been fully explored. This study employs a spatial econometric model to investigate the impact of DIF on CRPC in 278 prefecture-level cities in China from 2011 to 2020. The findings indicate that DIF has a positive impact on CRPC, with significant spatial spillover effects. The analysis highlights the pivotal mediating roles played by technology effect and electrified effect of the energy mix, while environmental regulation effect plays a moderating role. Notably, disparities in the impact of DIF on CRPC are evident, particularly in non-resource-based cities, cities with low carbon intensity, and eastern regions where spatial spillover effects are more pronounced. These experiences enrich the relevant thesis in terms of DIF on CRPC, providing a theoretical basis for formulating CRPC schemes.

Spatio-temporal effects of digital inclusive finance on the synergy between CO2 and air pollution emissions in 251 Chinese cities

Achieving the synergistic reduction of CO2 and air pollution emissions (SRCAPEs) holds great significance in promoting the green transformation. However, limited research has been conducted on the spatio-temporal impact of digital inclusive finance (DIF) on the synergy between CO2 and air pollution emissions (SCAPEs). To address this gap, we comprehensively employ the linear regression model, geographically and the temporally weighted regression (GTWR) model, and the ordered probit model to empirically analyze the influence of DIF on SCAPE. Our research reveals the following: (1) The linear regression model demonstrates that, on average, DIF can achieve a weak synergistic emission reduction effect. This result remains robust after a battery of robustness tests. (2) The GTWR model reveals that the impact of DIF on both emissions exhibits evident spatio-temporal characteristics. Its emission reduction effect gradually increases, especially after 2014. (3) On the basis of the estimates from the GTWR model, we can identify four distinct synergy types driven by DIF. The number of cities with the preferred type (i.e., achieving SRCAPE) increases the most, from 59 in 2011 to 233 in 2019. (4) On the basis of the built ordered probit models, green technology innovation is an important path for DIF to achieve synergistic emission reduction. The synergistic emission reduction effect is also significantly moderated by the regional economic level and environmental regulation intensity. Our findings have policy implications for central and local governments in achieving SRCAPE and support efforts to achieve sustainable development.