Environmental Regulation, Digital Financial Inclusion, and Environmental Pollution: An Empirical Study Based on the Spatial Spillover Effect and Panel Threshold Effect

The impact of digital inclusive finance on environmental pollution: A case study of air pollution

This study delves into the impact of digital inclusive finance on environmental pollution, with a specific focus on air pollution. Utilizing data from 265 Chinese cities, advanced econometric methods such as the bi-directional fixed effects model, threshold model, spatial Durbin model, and multi-period difference-in-differences model are employed, incorporating a variety of control variables. The empirical findings indicate that digital inclusive finance significantly reduces air pollution. This mechanism chiefly operates through enhancing public environmental consciousness and fostering green technological innovation. The study also uncovers the spatial spillover effect and non-linear characteristics of digital inclusive finance on air pollution, along with its interactive effects with specific policies (e.g., smart city pilot policies and the "major protection, no major development" initiative). Moreover, heterogeneity analysis reveals regional variations in the environmental effects of digital inclusive finance. These insights provide a novel perspective on the relationship between financial technology and environmental protection and offer crucial guidance for policymaking.

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.

An evolutionary game study on the collaborative governance of environmental pollution: from the perspective of regulatory capture

Local governments have been captured by enterprises and, thus, have relaxed environmental regulations. This phenomenon has occurred repeatedly and has resulted in serious environmental pollution, posing an enormous threat to public health. To solve this problem, this study introduces central environmental protection inspection and media supervision and considers the economic preferences and environmental preferences of local governments. A four-party evolutionary game model composed of enterprises, local governments, the central government and the media is constructed, and the equilibrium solution of four-party replicator dynamics equations is obtained. The influence of relevant parameters on the choice of strategies of the four main bodies is simulated by using MATLAB software to explore the paths and measures for overcoming regulatory capture and to further improve the modern environmental governance system. The results show the following: First, local governments are easily captured by large enterprises. Second, the central government can improve the environmental behavior of local governments by reducing their economic preferences and strengthening punishment. Third, compared to the penalties imposed by the central government, those imposed by local governments have a more significant impact on the environmental behaviors of enterprises. Fourth, compared to the use of an environmental protection tax policy or a tax relief policy alone, the combination of the two has a more significant impact on the environmental behaviors of enterprises. Fifth, central environmental protection inspection and media supervision can improve the environmental behaviors of both local governments and enterprises, and the effect of media supervision is better than that of central environmental protection inspection. This study recommends improving the performance evaluation system for local governments to coordinate economic development and environmental protection, ensuring that local governments assume the main responsibility, using a combination of incentive and constraint policies for enterprises, and increasing the environmental protection inspection and media supervision of local governments and enterprises to resolve the dilemma of regulatory capture in environmental pollution through the simultaneous enhancement of the environmental behavior of local governments and enterprises.

Evaluating the trilemma nexus of digital finance, renewable energy consumption, and CO2 emission: evidence from nonlinear ARDL model

It has been established in 2030 sustainability objectives as per SDGs that highlight the critical importance of access to affordable, renewable energy, robust, long-term industrial progress, and digital financing in CO2 emission. The intent of study is to test the trilemma nexus between digital finance, renewable energy consumption, and carbon emission reduction with nonlinear ARDL tests. The study acquired the data and applied the nonlinear ARDL test, split analysis tests, and vector-error correction model (VECM) tests. The results of the study highlighted that the increase of digital finance positively enhances the renewable energy and negatively reduces the CO2 emissions which we calculate to be 11.4% of the digital finance funding on renewable energy goods. For this, a 39% increase in digital financing is noticed by the research findings during the COVID-19 crisis period. Such robust study findings present the latest insights that digital financing is an eminent and viable source of financing for the trilemma nexus with renewable energy consumption and the CO2 emissions. Following these, multiple research implications are also presented for the key stakeholders.

Environmental regulation, digital finance, and technological innovation: evidence from listed firms in China

Environmental regulation becomes essential to corporate technological innovation amid increasing concern with environmental issues. However, a clear understanding of the specific role of environmental regulation's ex-post effectiveness is lacking. Using the panel data of Chinese A-share listed firms during 2011-2018, we examine the effects of environmental regulation on corporate technological innovation. The results indicate that environmental regulation negatively affects corporate technological innovation. With regard to digital finance, it benefits for corporate technological innovation and positively moderates the relationship between environmental regulation and corporate technological innovation. The heterogeneity analysis suggests that the negative impact of environmental regulation over technological innovation is much significant for small-scale firms, western-region firms, and firms with strong financing constraints. Furthermore, the moderating role of digital finance is more significant for firms with strong financing constraints and heavy polluting firms. We also verify the robustness of the regression results. The current study provides both theoretical support and reference to improve corporate technological innovation and promote high-quality economic development through adopting reasonable policy measures.

Environmental regulation and high-quality agricultural development

The key trend for future agricultural growth is efficient, green and sustainable high-quality development, and it is crucial to sort out the factors influencing high-quality agricultural development.

OBJECTIVES

The purpose of this study is to dissect whether environmental regulation has a catalytic effect on quality rural development, through which paths it is driven and whether there is a threshold effect to be further clarified.

METHOD

In this study, the panel data of 34 provinces in China from 2012 to 2018 are used, and 17 variables are used to construct an evaluation index system, covering four dimensions: agricultural endowment, agricultural output level, agricultural green degree and social sustainability. The high-quality development of agriculture is measured by entropy method. And further, using a baseline regression model and a mediating effects model, we empirically investigated the impact of environmental regulation on high-quality agricultural development and its mechanism of action, and empirically assessed the nonlinear effects of environmental regulation using a threshold regression model.

RESULTS

Environmental control, as noted in the study, considerably assists in the establishment of high-quality agriculture; at the same time, large-scale land management plays a role in mitigating the influence of both. There is a single income threshold impact on rural households between high-quality agricultural growth and environmental regulation, and once that threshold is reached, the influence of high-quality agricultural growth grows. Contribution: According to the research findings, recommendations are made for the design of scientific environmental regulation policies, the establishment of a sound service system for large-scale rural land management, and the establishment of a stable mechanism for rural residents to sustain their income, in order to strengthen the effect of environmental regulation and realize high-quality agricultural growth in China. The marginal contribution of this paper is to enrich the study of the relationship between environmental regulation and high-quality agricultural development, which has theoretical and practical implications for promoting sustainable agricultural development.

Digital finance and regional green innovation: evidence from Chinese cities

Digital finance realizes the combination of finance and technology, makes up for many deficiencies of traditional finance, and brings opportunities for green and innovative development. However, systematic research on regional digital finance and green innovation is still lacking. Based on this, this study aims to analyze the impact of digital finance on the regional level of green innovation. For the analysis, the fixed-effect model, the mediating effect model, and the moderating effect model are used to perform regression on the panel data of Chinese cities. The results show that digital finance can significantly improve the level of regional green innovation. Improving the level of regional green financial services is its main mechanism, but the intermediary role of industrial structure optimization and upgrading fails to pass the test. In addition, the results of heterogeneity analysis show that digital finance plays a greater role in promoting green innovation in areas with high levels of traditional financial supply and Internet infrastructure construction. It is worth noting that digital finance does not really play the role of universal benefit, widening the regional green innovation gap. The main contributions of this study are to prove the positive effect of digital finance on green innovation at the regional level, clarify its transmission mechanism and urban heterogeneity analysis, and find that the current digital finance cannot bridge the gap of regional green innovation.

Digital Finance, Environmental Regulation, and Green Technology Innovation: An Empirical Study of 278 Cities in China

Digital finance provides a premises guarantee for green technology innovation, and effective environmental regulation helps to achieve green and sustainable development. This article selects Chinese urban panel data from 2011 to 2019 to explore the impact mechanism of the influence of digital finance and environmental regulation on the innovation capacity of green science and technology. It is found that extensive financing channels and the strong information-matching ability of digital finance have a significant promoting effect on local green science and technology innovation. Moreover, government environmental regulation not only facilitates the development of green technology innovation locally and in nearby regions, but also strengthens the utility of digital finance in driving green science and technology innovation. Further research found that the influence of digital finance and environmental regulation on the ability of green science and technology innovation has regional heterogeneity, and only digital finance in Central China can promote green science and technology innovation in both local and adjacent areas. Therefore, the government should continue to promote the development of digital finance, optimize environmental regulations by increasing environmental protection subsidies and creating a green innovation environment, and further stimulate willingness to innovate green technologies. At the same time, it is also important to note the coordinated development and governance with neighboring regional governments.