Digital financial inclusion: A gateway to sustainable development

Digital financial inclusion, industrial structure and urban-Rural income disparity: Evidence from Zhejiang Province, China

Rising income inequality challenges economic and social stability in developing countries. For China, the fastest-growing global digital economy, it could be an effective tool to promote inclusive development, narrowing urban-rural income disparity. It investigates the role of digital financial inclusion (DFI) in narrowing the urban-rural income gap. The study uses panel data from 52 counties in Zhejiang Province, China, from 2014 to 2020. The results show that the development of DFI significantly reduces rural-urban and rural income inequality. The development of DFI helps optimize industrial structure and upgrade the internal structure of agriculture, facilitating income growth for people in rural areas. Such effects are greater in poorer counties. Our findings provide insights into why rapid DFI and the narrowing of the rural-urban income disparity exist in China. Moreover, our results provide clear policy implications on how to reduce the disparity. The most compelling suggestion is that promoting the optimization of industrial structure through DFI is crucial for narrowing the urban-rural income gap.

Catalyzing sustainable development: Exploring the interplay between access to clean water, sanitation, renewable energy and electricity services in shaping China's energy, economic growth, and environmental landscape

The Sustainable Development Goals (SDGs) reflect the shift in global economic conversation toward inclusive growth. The growth can promote inclusivity and widespread sharing of its advancements by concentrating on four key dimensions. (a) Equality of opportunity, (b) sharing prosperity, (3) environmental sustainability/climate adaptation, and (4) macroeconomic stability. We used the Kao cointegration test to study how certain variables are connected over a long period. The relationship between CO2 and GDP per capita, renewable energy and tourism, improved water and sanitation, and access to power all have a positive feedback effect on each other. Based on FMOLS's findings, a 1 % increase in Inclusive growth leads to a 0.342 % (Model 1) and 0.258 % (Model 3) increase in CO2 emissions. An increase of 1 percent in energy consumption per person resulted in a rise of 1.343 % in CO2 emissions in Case 1, 0.524 % in Case 2, and 0.618 % in Case 3. Increasing the tourism sector's proportion of total exports by just one percent will reduce CO2 emissions by 0.221 % (case 1) and 0.234 % (case 3). Based on CCR findings, a 1 % improvement in inclusive growth leads to a 0.403.

Can major public health emergencies increase the participation of commercial insurance? Evidence from China

Background

Public health emergencies have a lasting impact on a country's economic and social development. However, commercial insurance can disperse these negative consequences and reduce risk losses.

Method

Based on the Chinese Household Tracking Survey and Peking University Digital Inclusive Finance Index, this study employed a difference-in-differences model to test the impact of the COVID-19 outbreak on commercial insurance participation and the impact mechanism.

Results

The analysis showed that the outbreak of COVID-19 improved residents' risk perception, risk preference and digital finance and promoted their participation in commercial insurance, commercial endowment insurance, and commercial medical insurance.

Conclusion

Major public health emergencies can increase commercial insurance participation, but the promotional effect of commercial insurance on rural and low-income individuals is relatively limited. To tap into potential customers, financial institutions should focus on vulnerable societal groups. This study supplements the relevant literature on the impact of major public health emergencies on commercial insurance participation.

Digital financial inclusion and upgrading of consumption structure: Evidence from rural China

Based on the perspective of spatial economy, this paper focuses on the primary effects and spatial characteristics of Digital Financial Inclusion (DFI) on the upgrading of rural consumption structure (URCS) in China, conducting a literature review and theoretical analysis. It then uses statistical data collected over the years and the Digital Financial Inclusion Index (DFII) of Peking University to prepare panel data for 31 provinces in China (aside from Hong Kong, Macao, and Taiwan) from 2011 to 2020 for empirical testing. The results are as follows: DFI can considerably boost URCS, and there is a strong spatial neighbor impact, that is, it is affected by random shocks in surrounding provinces via its spatial effect; DFI has nonlinear characteristics in the process of fostering URCS, with the threshold variables of income level and family sizes; the impact of DFI on URCS is spatially heterogeneous, and the promotion of the eastern region is better than other zones. These results can inform policymakers about rural development and provide valuable references to push forward rural vitalization.

Investigating the unparalleled effects of economic growth and high-quality economic development on energy insecurity in China: A provincial perspective

China has changed its focus from traditional high-speed economic growth to high-quality economic development (HQED) and the implementation of environmentally friendly practices. This transition can have parallel or unparallel impacts on energy insecurity (EIS). In this regards, HQED, inter Alia, is crucial in mitigating EIS and combating the energy crisis. Our study explores the impact of economic growth (EG) and HQED on EIS using the provincial panel data of China for the period 2011-2017. From the perspective of comparative analysis, the results reveal that HQED reduces EIS while EG increases it. The robustness checks indicate that industrial structure (IS) has a negative impact on EIS, whereas industrial structure upgrading (ISU) and green innovation (GI) have a positive influence. This implies that IS contributes to an increase in EIS, whereas ISU and GI result in a decrease in EIS. In addition, the analysis reveals that digital financial inclusion (DFI) exhibits a significant positive relation with EIS, albeit occasionally a negative but insignificant link. The policy implication is that the government should stimulate policies to promote HQED which reduces the EIS.

Financial inclusion, environmental degradation, and the moderating role of ICT: a global perspective

This study aims to investigate the global perspective on the relationship between financial inclusion and environmental degradation, taking into account the potential moderating role of information and communication technology (ICT). The research utilizes panel data from 131 countries, covering the period of 1995 to 2019. The findings show that financial inclusion has significant and positive impact on carbon emissions, implying that as financial inclusion increases, so do carbon emissions. Moreover, our findings reveal a significant negative moderating effect of the ICT on the relationship between financial inclusion and carbon emissions. This implies that the impact of financial inclusion on carbon emissions is contingent upon the level of ICT development. The robustness of these findings is confirmed through the use of alternative proxies for the explanatory and moderating variables, as well as alternative estimation methods. The outcomes of this study carry significant implications for both policy and practice.

Transforming Healthcare: The Revolutionary Benefits of Cashless Healthcare Services

As cashless hospital services have grown in popularity, the healthcare sector has seen a tremendous transition. That means the payments are done in an electronic manner which is also known as e-pay. The article discusses the benefits of cashless healthcare services, which are transforming the healthcare sector by providing a streamlined, secure, and effective experience for patients and healthcare providers. Cashless healthcare facilities make use of cutting-edge technologies, including mobile applications, digital wallets, and secure internet platforms, to optimize the utilization of resources within the healthcare ecosystem and improve the overall patient experience. The incorporation of technology has led to revolutionary innovations that continue to redefine the way people access and experience health services. The advantages of cashless hospital services have transformed the healthcare sector by enhancing data security, facilitating transparent billing, and encouraging a patient-centered approach. Cashless services are a preferred method of payment for both consumers and organizations due to their convenience and accessibility. Patients can make payments using digital channels such as mobile payment applications, online payment gateways, or contactless payment cards, whether they are paying for medications, lab tests, or complicated surgeries. Cashless transactions drastically reduce administrative challenges for healthcare providers by eliminating the requirement for manual documentation, which facilitates quick electronic transactions and reduces processing times. As the billing and payment process becomes digitized and streamlined, doctors and medical personnel can focus more on treating and caring for patients. Additionally, much faster insurance claim processing and verification processes result in quicker pay-outs and minimize the financial burden on patients.

Digital inclusion to enhance energy sustainability: public participation and environmental governance in the new media era to achieve energy sustainable goals

Renewable energy not only helps to safeguard the environment and slow down climate change but also supports economic growth and energy security. The significance of renewable energy sources is expanding as more people throughout the globe understand how important it is to switch to clean energy sources. Therefore, empirics are in search of the factors that can promote renewable energy production. This analysis investigates some of the novel determinants of renewable energy production, such as digital inclusion, public participation, and environmental governance, which have not been examined previously in any study. For empirical analysis, the study employs the ARDL and QARDL estimation techniques using Chinese data from 1998Q1 to 2021Q4. The analysis findings confirm that digital financial inclusion, ICT, and GDP are vital in boosting both short and long-run renewable production. Green investment, environmental governance, and carbon emissions also significantly and favourably impact long-run renewable energy production. In the Quantile ARDL model, digital financial inclusion is positively linked to renewable energy production at most of its quantiles in the short and long run, while the ICT, GDP, environmental governance, and carbon emissions are positively linked to renewable energy in most quantiles in the long-run only. The Wald test confirms the asymmetric impact for all variables in the long run, which implies that policymakers should consider the positive and negative changes in these factors while devising policies for enhancing renewable energy production.

Do environmental taxes, environmental innovation, and energy resources matter for environmental sustainability: Evidence of five sustainable economies

This study explores the relationship between environmental taxation, environmental technologies, energy resources, and consumption-based carbon emissions in five leading green economies from 2000 to 2019. The study applied the Cross-Sectional Auto-Regressive Distributed Lag (CS-ARDL) model to derive benchmark results, with Augmented Mean Group (AMG) and Common Correlated Effect Mean Group (CCEMG) techniques being utilized for conducting robustness analyses. The empirical findings suggest that environmental taxation, environmental innovations, and the consumption of renewable energy are associated with a reduction in consumption-based carbon emissions, thereby contributing to enhanced environmental sustainability. Conversely, the utilization of non-renewable energy is linked to an increase in consumption-based carbon emissions. These results align with the objectives outlined in the Sustainable Development Goals' 2030 agenda, particularly SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 13 (Climate Action), offering valuable policy implications.

Digital financial inclusion and quality of economic growth

Recently, digital financial inclusion has experienced rapid growth, introducing transformative changes to the finance industry. Its attributes of low cost, extensive coverage, and efficient cross-temporal and spatial information dissemination have had a significant impact on both economic growth and social development. This study, using China's provincial panel data, measures the quality of economic growth based on technological innovation, coordinated development, environmental protection, opening to the outside world, and people's livelihood. It verifies the impact of digital financial inclusion on the quality of economic growth by utilizing the panel fixed effect model, mediation effect model, panel threshold model, and spatial Durbin model. Digital financial inclusion has a positive impact on the quality of economic growth, particularly in the eastern region and regions with high marketization. It can effectively promote the quality of economic growth by stimulating entrepreneurial vitality, and has had a positive and increasing non-linear effect on the quality of economic growth over the past few years. Moreover, digital financial inclusion can promote the quality of economic growth in neighboring regions. Therefore, the quality of economic growth can be significantly improved by expanding the coverage breadth and usage depth of digital financial inclusion.

Digital inclusive finance and the development of rural logistics in China

The precarious production environment in rural areas limits the services of traditional finance and rural logistics. Digital inclusive finance is expected to alleviate some major drawbacks enabling financial services to contribute to rural logistics development. Using panel data from 31 provinces in China from 2013 to 2020, this paper constructed an indicator system to measure the development level of rural logistics. Furthermore, this paper investigates the mechanism enabling digital inclusive finance influences to enhance rural logistics development. We found that financial inclusion and digital finance have a positive and significant impact on the development level of rural logistics. Moreover, we found a nonlinear relationship with a diminishing marginal effect between digital inclusive finance and the development level of rural logistics. Furthermore, it was highlighted that the promotion efficiency of digital inclusive finance on the development level of rural logistics varies according to the region and economic development. This paper provides a theoretical basis for digital inclusive finance to promote rural logistics development. It also contributes to enhancing the role of financial services enabling good development of rural logistics.

Towards inclusive green growth: does digital economy matter?

In this decade, China has been pursuing an inclusive green growth strategy. Concurrently, the digital economy, which relies on the Internet of Things, big data, and artificial intelligence, has experienced explosive growth in China. The digital economy's capacity to optimize resource allocation and reduce energy consumption potentially makes it a conducive channel towards sustainability. Using the panel data of 281 cities in China from 2011 to 2020, we theoretically and empirically explore the impact of the digital economy on inclusive green growth. Firstly, we theoretically analyze the potential impact of the digital economy on inclusive green growth using two hypotheses: accelerating green innovation and promoting the industrial upgrading effect. Subsequently, we measure the digital economy and inclusive green growth of Chinese cities using Entropy-TOPSIS and DEA approaches, respectively. Then, we apply traditional econometric estimation models and machine learning algorithms to our empirical analysis. The results show that China's high-powered digital economy significantly promotes inclusive green growth. Moreover, we analyze the internal mechanisms behind this impact. We find that innovation and industrial upgrading are two plausible channels that explain this effect. Additionally, we document a nonlinear feature of diminishing marginal effects between the digital economy and inclusive green growth. The heterogeneity analysis shows that the contribution weight of the digital economy to inclusive green growth is more remarkable in eastern region cities, large and medium-sized cities, and cities with high marketization. Overall, these findings shed more light on the digital economy-inclusive green growth nexus and provide new insights into understanding the real effects of the digital economy on sustainable development.

Can Digital Finance Promote Peak Carbon Dioxide Emissions? Evidence from China

This paper uses Chinese provincial panel data from 2011 to 2019, measures CO₂ emissions of provinces in China using the IPCC method, and explores the impact of digital finance on CO₂ emissions through the SAR model and SDM. Empirical study shows that digital finance significantly reduces CO₂ emissions. Digital finance reduces CO₂ emissions by promoting energy industrial structure transformation and spreads to surrounding areas through spillover effects, contributes to increasing green patents granted and thus reduces regional CO₂ emissions, advances the green technological progress and therefore inhibits CO₂ emissions, but reduces the green technological progress in surrounding areas and increases CO₂ emissions due to the siphon effect. With the development of digital finance itself, the higher the level of financial regulation, green development and the green finance index, the better the effect of digital finance on CO₂ emission reduction. Additionally, digital finance significantly reduces CO₂ emissions in the south of China.

Does financial inclusion promote investment and affect residents' happiness?-Evidence from China

With the rapid development of inclusive finance, the popularity of financial services is increasing, and the level of financial literacy of residents has gained. Using data from the years 2013, 2015, and 2017 China General Social Surveys (CGSS) and the China Digital Inclusive Finance Development Index to analyze residents' investment behavior in China, this study finds that inclusive finance significantly increased residents' investment participation and decrease their sense of happiness at the same time. This study demonstrates the effectiveness of China's financial inclusion policy and provides ideas for its further improvement.