Digital finance, financial regulation and transformation of R&D achievements

The transformation of scientific and technological achievements is the best form of the combination of technology and the economy, and only when new technologies are transformed into commodities can they be transformed into real productive forces and exert scale effects. With the rapid development of digital finance, it has changed the operating mode of financial markets and consumer behavior. Does digital finance promote the transformation of R&D achievements? We empirically examine this question using the panel data covering 30 provinces in China from 2011 to 2021. The empirical results indicate that the development of digital finance can improve the transformation rate of R&D achievements. Additionally, we find that the role of digital finance in promoting the transformation of R&D achievements needs to be guaranteed by the level of effective financial regulation. The research conclusions are a relevant reference for the government to improve the transformation rate of scientific and technological achievements.

How does digital finance reduce carbon emissions intensity? Evidence from chain mediation effect of production technology innovation and green technology innovation

The digitalization of finance drives economic development and plays a crucial role in energy conservation and carbon emission reduction. Utilizing carbon emissions data from 2011 to 2020, we find that digital finance development can mitigate carbon emissions intensity (CEI) by approximately 0.14 %. Then, we employ a diverse set of robustness and endogeneity tests to assess the reliability of the empirical findings. Moreover, the study delves into how digital finance impacts CEI through production technology innovation (PTI) and green technology innovation (GTI). The results indicate a positive effect of PTI on CEI. GTI exerts a negative influence on CEI. In addition, there is a chain mediation effect between PTI and GTI in the baseline path. Finally, the impact of digital finance on CEI exhibits apparent regional heterogeneity.

Impacts of digital finance on energy efficiency: does environmental regulation matter?

The paper examines how digital finance affects energy efficiency in China using a dynamic panel model and data from 282 cities between 2011 and 2019. The study is based on the hypothesis which is related with digital finance, environmental regulation, and energy efficiency. The results indicate that: (1) Digital finance significantly improves energy efficiency, and this finding is consistent after several tests; (2) Digital finance has a positive effect on energy efficiency in non-resource-based cities, recession and regeneration resource-based cities, and old industrial base cities, but no significant effect on energy efficiency in growth and maturity resource-based cities and non-old industrial base cities; (3) Environmental regulation positively influences how digital finance affects energy efficiency; (4) The impact of digital finance on energy efficiency depends on the degree and tools of environmental regulation. This research offers valuable insights to local governments in China for promoting financial digitization and enhancing energy efficiency.

Can digital finance development drive green transformation in manufacturing? Evidence from China

Digital finance is a product of emerging technology-enabled innovation in financial services and has a critical impact on the green transformation of the manufacturing industry. We propose a new efficiency measurement model based on the slacks-based measure (SBM) to measure the efficiency of green transformation on regional manufacturing. Chinese interprovincial data from 2010 to 2019 were obtained for the study. In addition, we estimated the effect of digital finance on green transformation of manufacturing using a benchmark panel model. Finally, considering the regional heterogeneity and spatial effects of green transformation efficiency in the manufacturing industry, we constructed a spatial Durbin model based on an economic-geographic nested spatial weight matrix to analyze the spatial influence of digital finance on green transformation in the manufacturing industry. The results show that the green transformation of the manufacturing industry has significant positive spatial spillover effects owing to the existence of competition, demonstration, and economic correlation effects among regions.

Digital finance, innovation transformation, and resilient city growth

Digital finance is a pivotal catalyst for a contemporary economic system and assumes a significant auxiliary function in the establishment of resilient urban centers. This study empirically examines the enabling influence of digital finance on resilient cities using panel data from 287 prefecture-level cities and above in China between 2011 and 2020. The analysis is based on the mechanisms of innovation and transformation. The importance of digital finance in facilitating the development of resilient cities has been observed, with a specific emphasis on its impact on enhancing the adaptive capacity and growth resilience of urban areas. The utilization of digital finance has the potential to expedite the process of transforming urban industrial structures, invigorating innovation and entrepreneurial activities, and serving as a significant catalyst for the development of resilient cities. The analysis of heterogeneity reveals that various aspects of digital finance have varying degrees of influence on urban resilience. Specifically, the depth of utilization of digital finance exerts the most significant impact, followed by the level of digitalization, while the extent of coverage has the least effect. Furthermore, when considering regional distribution, the promotion effect of digital finance on resilient cities diminishes gradually from the eastern to the central and western regions.

How digital finance impacts listed companies' green innovation in China: a product market perspective

We empirically test whether and how digital finance impact green innovation utilizing data from Chinese listed companies and the Digital Inclusive Finance Index at the city level over the period from 2011 to 2020. The results show the following: (a) digital finance has a positive impact on green innovation, (b) improving consumer demand and strengthening market competition are two important influence channels, (c) customer concentration and corporate social responsibility are two important moderating variables that affect the aforementioned product market mechanisms, and (d) the positive impact of digital finance is more prominent within state-owned enterprises, companies with high financial risks, economically underdeveloped regions, and low-polluting industries. This research provides insights for China and similar economies on how to leverage the significant role of digital finance in achieving their net-zero-carbon targets.

Can carbon emission trading policy break China's urban carbon lock-in?

Greenhouse gas emissions from the use of fossil energy are the main drivers of global warming. China's dominant consumption of fossil energy necessitates adjustments in its energy consumption structure to break free from the carbon lock-in (CLI) phenomenon. Market-based environmental regulations, represented by the carbon trading market (CTM), play an important role in achieving the dual carbon goals of China. Using panel data of 270 prefecture-level cities in China from 2005 to 2020, this study applies a difference-in-difference model to identify the effect of CTM on urban CLI, analyze its transmission mechanism, and further examine the impact of urban characteristic heterogeneity on policy effects from multiple perspectives. Results show that the construction of CTM significantly reduces the degree of CLI of pilot cities; (2) CTM mainly affects urban CLI by promoting urban green technology innovation, industrial structure upgrading, and public green behavior; and (3) the inhibitory effect of CTM on CLI is more significant in cities with high carbon price, industrialization, and digital finance levels. The primary paths toward realizing carbon unlocking include optimizing the institutional design for CTM, enhancing the effective promotion and application of low-carbon technologies, cultivating the green awareness of the public, and increasing government investments in energy-saving and emission reduction techniques.

Obscuring effect of income inequality and moderating role of financial literacy in the relationship between digital finance and China's household carbon emissions

Households have emerged as one of the primary sources for carbon emissions in China, thus posing challenges to the "dual carbon" objectives. Digital finance, an emergent form of industry that fused advanced technology with financial services, had a pronounced impact on household carbon emissions stemming from daily consumption. However, the mechanisms driving this impact have not been adequately examined. Based on micro-level household survey data across 25 Chinese provinces from 2012, 2014, 2016, and 2018, the study identified the chief channels via which digital finance affected household carbon emissions, deriving several key findings. First, digital finance augmented household carbon emissions, presenting a significant negative impact on the climate. Second, due to the existence of "digital divide" between rural and urban areas, the impact of digital finance was more subdued in rural areas. Additionally, the effects of digital finance were more pronounced in the affluent eastern provinces. Third, income mobility obscured the positive relationship between digital finance and household carbon emissions. This is primarily attributed to the urban-rural divide in China; taking into account that urban-to-rural transfers make income distribution more equitable, there is a counterintuitive drop in per capita consumption, thereby suppressing consumption-related carbon emissions. This presented the conundrum of "income distribution equality-consumption negativity". Finally, financial literacy was identified as a crucial positive moderating role, enabling households with high financial literacy to harness the dividends of digital finance, thereby engaging in more diversified consumption activities and intensifying the negative impact of digital finance on carbon emissions. The findings reinforced the pivotal role of digital finance in bolstering efforts to combat climate change and ensuring environmentally-responsible economic advancements.

Exploring the moderating role of digital finance in the two-way foreign direct investment and green technology innovation nexus: an empirical evidence from China

Based on the provincial panel data of China from 2011 to 2020, this paper explores the relationship between two-way FDI and green technology innovation and examines the moderating role of digital finance in the impact of two-way FDI on green technology innovation. The results show that (1) two-way FDI can significantly enhance the level of green technology innovation. (2) Digital finance plays a moderating effect in the process of two-way FDI to enhance the level of green technology innovation. The conclusion is still robust by replacing the dependent variable, eliminating special samples and shrinking the tail. (3) The results of sub-dimensional analysis show that the three sub-dimensions indicators of the digital finance also have a positive moderating effect on the relationship between two-way FDI and green technology innovation. (4) The results of sub-regional regression show that the moderating effect in the central and western regions is greater than that in the eastern region. The results of the study can provide reference for governments to formulate policies about digital finance, which is conducive to achieve high-quality opening-up and realize green development.

Impact of digital finance on urban ecological resilience: evidence from the Yangtze River Economic Belt in China

From the emergence of the new coronavirus pandemic to extreme climatic catastrophes, the development and enhancement of urban ecological resilience has evolved into a critical and strategic imperative. Investigating the capacity of digital finance to promote urban ecological resilience bears substantial relevance to the sustainable advancement of urban centers. This study examines the influence of digital finance on urban ecological resilience by applying a benchmark regression model on data from 107 prefecture-level cities within the Yangtze River Economic Belt across 2011-2020. Additionally, this study delves into its mechanism and spatial spillover impacts via a mediating effect model and a spatial effect model. The findings revealed that (1) digital finance strengthens the ecological resilience of the locale and beneficially impacts the surrounding regions; (2) digital finance enhances urban ecological resilience by fostering technological innovation and reducing energy intensity; and (3) in the lower reaches of the Yangtze River, digital finance plays a greater role in improving urban ecological resilience. Cities with high level of traditional financial development, high level of economic development and high intensity of environmental regulation have a more obvious role in promoting urban ecological resilience. Within the paradigm of ecological civilization, it is advisable for governmental bodies to fortify inter-regional digital financial collaboration, refine the green financial infrastructure, and advocate for sustainable, low-carbon, high-quality urban development.

The role of digital finance for the growth of renewable energy: evidence from China

Developing renewable energy (RE) is the inevitable choice for China to achieve its climate goals. However, financing RE investments remains challenging. Meanwhile, China's digital finance (DF) is profoundly influencing the trajectory of the energy transition. This study empirically investigates the role of DF on the growth of RE, what aspects of DF matter, and its geographical attenuation process, taking both spatial and temporal dimensions into consideration. The empirical results show that DF and its coverage breadth and usage depth can facilitate RE development in both local and neighboring regions, with a comparatively limited effect of digitalization level. The impact of DF on the growth of RE is heterogeneous and has been declining over time. Specifically, this effect is observable only in the eastern regions. The spillover effects of DF on RE development vary in different spatial thresholds, which has clear boundary effects and geographical decay characteristics.

Research on the impact and mechanism of digital capabilities and digital finance on household wealth in the context of aging

China has entered a period of synchronous development between digitalization and aging. Based on the data from the China Household Finance Survey (CHFS), the partial least squares structural equation model (PLS-SEM) and multi-group analysis were used to analyze the impact mechanism of digital capabilities and digital finance on the wealth of elderly households. The results indicate that digital capabilities and digital finance can improve the wealth level of households headed by the elderly through direct and indirect paths. The indirect effects of digital capabilities and digital finance on elderly household wealth are all exerted through the node of business and property income, and entrepreneurship/investment are mediating variables. Moreover, digital capabilities have a greater impact on the wealth of elderly households in the central and western China regions, while digital finance has a greater impact in the eastern China regions. In addition, there is no significant difference in the effect of digital capabilities on business and property income across regions, while digital finance has a larger effect in the eastern region. The above conclusions can provide theoretical and practical support for realizing active aging and common prosperity in different countries and regions.

Measuring the performance of green investment portfolios for zero-carbon environment: a comparative analysis of digital finance and asset-backed securities

This study presents a comparative examination of the performance of green investment portfolios to attain a zero-carbon environment by studying assests-backed securities. Using the portfolio return, the draw ratio, or the ROMAD as measures, the numerical findings. The study intention is to measure and assess the success of green investment portfolios. This will probably include weighing the costs and advantages of several routes toward a carbon-free future, and the major emphasis is on measuring the effectiveness of financial investments in promoting ecological sustainability. The research specifically examines the use of digital finance and asset-backed securities (ABS). This research evaluates the efficacy of these two methodologies in promoting sustainable investments, using relevant scholarly literature and empirical evidence. The study examines many essential indicators, including risk-adjusted returns, carbon footprint reduction, and market stability. The research elucidates the merits and drawbacks of various approaches in fostering ecologically sustainable investments, drawing on case studies and real-world illustrations. The results of this study provide valuable insights into how digital finance and asset-backed securities (ABS) might effectively contribute to the attainment of zero-carbon objectives, all the while maintaining financial stability. This study provides valuable insights for politicians, investors, and financial institutions to make well-informed choices on implementing these initiatives in the context of sustainable development.

Influence of digital finance on export green-sophistication

The export green-sophistication (EGS) is not only an important engine for the high-quality development of China's economy but also the external embodiment of the core international competitiveness and the key to resisting external competition and realizing the upgrade of the value chain. Using the database of China's digital finance development, China's A-share listed enterprises, and the China Customs database, we test the relationship between digital finance (DF) and the EGS of enterprises. It shows that DF significantly promotes listed enterprises' EGS, and compared to the depth of use of DF and digitization degree of DF, the promotion effect of coverage breadth of DF is the most significant. The heterogeneity analysis shows that the positive effect is more conspicuous for promoting the EGS in private enterprises, general trade enterprises, central and western regions' enterprises, and enterprises exporting to developed countries. The mechanism test finds that alleviating financing constraints and promoting green technological innovation are the two channels for DF to promote the enterprises' EGS. This study not only advances the understanding of the economic effects of DF but also implies the green transformation of China's exports.

Digital finance and green innovation efficiency: empirical data from Chinese listed manufacturing companies

Amid the flourishing digital economy, digital finance overcomes the constraints of the conventional financial model and largely improves the supply efficiency and use of funds. This provides new opportunities for manufacturing corporations to improve their green innovation efficiency. Employing Chinese Shenzhen and Shanghai A-share listed manufacturing corporations between 2011 and 2021, this paper conducts an empirical analysis to study the effect of digital finance on corporate green innovation efficiency. Discoveries suggest that digital finance significantly improves manufacturing corporations' green innovation efficiency. After a few robustness tests, the results are still accurate. According to a mechanism analysis, digital finance increases the effectiveness of green innovation in manufacturing corporations by removing financing constraints. According to the heterogeneity analysis, the impact of digital finance on manufacturing corporations exhibits distinctive financial and geographical regional heterogeneity, particularly accentuated in Zhejiang Province and the central and western regions. This paper can provide a valuable reference for digital finance in supporting manufacturing corporations in green innovation ventures and improving the level of green innovation in the context of digitalization.

Digital finance, government intervention, and carbon emission efficiency in China

In accordance with the "dual carbon" objective, China is required to effectively pursue economic expansion and environmental preservation while concurrently enhancing carbon emission efficiency (CEE). This study examines the influence of digital finance on CEE and evaluates the moderating effect of government intervention. The analysis uses panel data collected from 282 cities in China at the prefecture level and above, spanning the period from 2011 to 2021. The findings indicate the following: (1) CEE in China is relatively low, and there are notable regional disparities. Specifically, there is a discernible downward trend in CEE throughout the eastern, central, and western areas. (2) In general, the implementation of digital finance has the potential to enhance the efficiency of carbon emissions. The observed effect is significant in the eastern and central regions but not in the western region. (3) Government subsidies have the potential to amplify digital finance's impact on CEE in the eastern region. Conversely, in the central and western regions, its influence can be increased by environmental regulations. Based on these findings, this study presents recommendations for advancing digital finance, enhancing the targeting and assessment of government subsidies, refining environmental regulations, and encouraging the adoption of green technologies.

Green innovations and environmentally friendly technologies: examining the role of digital finance on green technology innovation

The digital finance created by technological empowerment has a significant impact on the inventive behavior of micro-enterprises. This paper uses a correlation analysis that combines the fixed effect model (FE) and the panel threshold model (PTM) to evaluate the impact of digital financing on the quantity and quality of innovation in green technology. In addition, its process is dissected in this work with respect to resource limitations and financial expenditures. The empirical evidence demonstrates that the use of digital financing considerably increases both the rate and quality of innovation in environmentally friendly technologies. Further, the effect of user engagement on green innovation is dynamically overlaid and accumulates over time, as opposed to the coverage of digital finance and digital services. In terms of ownership, growth cycle, and company size, digital finance may assist remedy the misallocation of financial resources and further drive inclusive green innovation. Based on the examination of underlying mechanisms, it is clear that digital finance may play a significant role in fostering innovation in environmentally friendly technologies by easing financial limitations and decreasing associated costs. Depending on the context, "quantitative change before qualitative change" describes the dynamic development process of green innovation fueled by digital finance. This paper proposes that the combination of technological innovation and digital financial services should focus on establishing an inclusive digital financial service system, fostering diverse financial forms, and enhancing the market environment for digital financial services.

How does digital finance encourage the use of renewable energy in China? Inverse relationships from green finance

A promising approach forfacilitating China's shift towards renewable energy sources entails combining digital finance and green financing. The present research investigates the supply chains and reverse logistics of significant financial indices, including the S&P Green Bond Index, the MSCI Global Markets Index, and the S&P Global Renewable Energy Index. The analysis encompasses the period from the creation of these indices on September 28, 2008, through January 12, 2022. To minimize risk, portfolios have increasingly adopted diverse indices, such as the S&P Global Clean Energy Index and the S&P Green Bond Index. This study investigates the intricate relationship between green financing and digital finance, shedding light on their combined impact on the uptake of renewable energy in China. This study examines the role of digital financial technologies, including blockchain, mobile payment systems, and big data analytics, in enhancing the accessibility of green financing choices for renewable energy projects. A comprehensive analysis of existing literature and empirical research is conducted to achieve this objective. The results emphasize the significant progress in improving financial inclusion, risk management, and transparency by integrating green financing and digital finance. As mentioned earlier, the enhancements have significantly enhanced the level of trust and assurance among investors operating within the renewable energy industry. Moreover, the report highlights the crucial need for continuous governmental backing and financial investments in digital financial infrastructure to drive China towards a more environmentally friendly and sustainable energy framework.

The dynamic impact of digital finance on green innovation: evidence enterprise-level empirical data in China

The digital finance generated by technology empowerment profoundly affects the innovative behavior of micro-enterprises. To estimate how digital finance influences the quantity and quality of green technological innovation, this paper introduces digital finance into endogenous economic growth model and further conducts correlation analysis with the combination of fixed effects model (FE) and panel threshold model (PTM). Moreover, this paper investigates the action mechanism from the perspective of financial constraint and financial cost. The empirical results indicate that digital finance improves the quantity and quality of green technological innovation significantly. Compared with the coverage of digital finance and digital services, the impact of usage depth on green innovation accumulates dynamically superimposed in the long term. The digital finance contributes to correct the mismatch of financial resources and further induces inclusive green innovation in the dimension of ownership, growth cycle, and enterprise scale. Mechanism analysis shows that the relief of financial constraint, environmental information disclosure, and increase of R&D investment are the main paths for digital finance to drive green innovation. With the different thresholds, the dynamic evolution process of green innovation driven by digital finance is characterized by "first quantitative change and then qualitative change." This paper suggests that the integration of technological innovation and digital financial services needs to build an inclusive digital financial service system, cultivate diversified financial formats, and improve the market environment of digital financial services.

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

Environmental pollution control and greenhouse gas emissions reduction have become the main ecological protection issues. The digital transformation of the financial sector provides a vital opportunity to holistically promote environmental governance. This article incorporates the synergistic reduction of pollution and carbon emissions into the environmental governance system of digital financial development. Using panel data from 280 cities in China between 2011 and 2018, we examine the impact of digital financial development on the synergistic reduction of pollution and carbon emissions. We find that (1) digital finance development can significantly improve the synergistic reduction of pollution and carbon emissions, effectively lowering carbon emissions while reducing pollution. External environmental concerns can further unleash the potential for digital finance development to enhance its synergistic reduction of pollution and carbon emissions. (2) The key transmission mechanism lies in the dual guidance of digital finance development toward biased technical change, i.e., toward energy-saving elements on the input side and toward reduced pollution output on the output side, thereby inducing the synergistic reduction of pollution and carbon emissions. (3) The synergistic effect of digital finance development on pollution and carbon reduction depends on the necessary regional development endowment, such as strong green technology innovation capabilities, lower traditional financial accessibility, and carbon sink reserves. This study expands the understanding of the environmental effects of digital finance development and offers crucial insights for exploring the optimal development path under green strategies.

Digital finance and regional economic resilience: Evidence from 283 cities in China

Digital technology provided a new driver for the rapid recovery of the global economy in the post-COVID-19 era. This study examined how digital financing affected regional economic resilience. First, this study constructs a multidimensional regional economic resilience evaluation system and measures the economic resilience levels of 283 Chinese cities for 2012-2021-using the entropy value method. Then, panel data, mediation effect, and threshold effect models were constructed to empirically test the impact mechanism of digital finance (DF) on regional economic resilience. The results show that DF improves regional economic resilience, which is more evident in central and western cities. Capital allocation efficiency, regional innovation, and regional consumption are effective paths, whereas DF affects regional economic resilience by enhancing capital allocation efficiency, strengthening regional innovation capacity, and promoting resident consumption. It is worth noting that excessive financialization can mask the role of DF. These conclusions provide new evidence clarifying the role of DF in promoting rapid economic recovery in the post-COVID-19 era.

How does digital finance affect sustainable economic growth? Evidence from China

Digital finance is an innovative financial model of great significance for sustainable economic growth. By constructing indicators of sustainable economic growth, we explore the impact of digital finance on sustainable economic growth using the fixed effect model, mediating effect model, threshold regression model, and dynamic spatial Dubin model. The study finds that digital finance can drive sustainable economic growth, and the robustness and endogenous treatment results strongly verify this. Digital finance promotes sustainable growth mainly through technological innovation. In addition, with technological innovation and the development of renewable energy, there is a significant nonlinear relationship between digital finance and sustainable economic growth. Finally, the spatial spillover effect results show that digital finance's impact on sustainable economic growth has a positive effect, whether it is a direct effect or an indirect effect. This article provides possible ideas for digital finance to promote sustainable economic growth.

How digital finance affects environmental pollution management: evidence from China

Due to people's insufficient anticipation of the negative impact of highly developed industries and the lack of prevention, global environmental pollution has occurred. These pollutants include air pollution, water pollutants, and land pollution, which not only cause direct damage and impact the ecosystem but also endanger the health of urban residents and economic development. Therefore, researching environmental pollution management is necessary to help solve these imminent environmental problems. In addition, digital finance, based on digital technology, can identify bottlenecks in environmental pollution management, formulate more effective governance strategies, and reduce environmental pollution at the source. In this context, this study uses the environmental pollution data of 287 cities in China from 2011 to 2021. It uses the fixed-effects and mediation effect models to analyze digital finance's role in environmental pollution management. The research shows that digital finance can promote environmental pollution management and play a promoting role through two channels of influence: green technology innovation and government green subsidies. At the same time, the effect of this promotion is more significant in cities in the Midwest and in resource-based cities. The research results propose strategies for government organizations in environmental pollution management, and alleviate current resource and environmental problems, in addition to realizing sustainable urban development.

How does digital finance affect firm environmental, social and governance (ESG) performance? - Evidence from Chinese listed firms

The use of digital finance to promote firm environmental, social, and governance (ESG) fulfillment is the key to achieving sustainable development. This study uses the data of Chinese listed firms from 2010 to 2019 and China Digital Financial Inclusion Index of Peking University to empirically examine the impact and mechanism of digital finance on firm ESG performance. Results show that digital finance significantly and positively impacts firm ESG performance. Mechanism tests reveal that digital finance influences ESG performance by promoting firm green innovation, improving firm goodwill and reducing agency costs. Moreover, political connections negatively moderate the relationship between digital finance and firm ESG performance, while regional institutional development positively moderates this relationship.. Subdivision of digital finance dimension test shows that the main factors affecting ESG performance are the depth of use and the degree of digitization, while the breadth of coverage is not significant. Digital finance can also promote firm innovation by promoting ESG performance. This study integrates the value effect of digital finance with the concept of sustainable development, which has important theoretical and practical significance.

Green economic revival acquisition: evaluating impact of digital finance and natural resource development

Digital financing is an emerging source after COVID-19 to address novel problems of economies and different industries. With the growing concern about the sustainability of the global environment, developing countries are now moving toward unprecedented economic development. This research analyzes the impact of digital finance and economic growth on environmental sustainability in China from 1995 to 2020, focusing on natural resource management. To include asymmetric patterns and handle socioeconomic shocks during the last three decades, the research uses the cutting-edge ordinary least square (O.L.S.) methodology. The O.L.S. helps the research findings and illustrated patterns of ecological sustainability dependency across various data distributions. According to the empirical results, N.R., F.D.P., and G.D.P. all benefited from carbon emissions at higher and lower emissions quantiles. Green technology innovation, on the other hand, considerably reduces emissions across all quantiles. Notably, the effect of each repressor significantly changed for lower, medium, and higher emissions quantiles, showing a thorough understanding of China's resource scarcity and sustainable growth.

How digital finance promotes renewable energy consumption in China?

This study uses a quantitative methodology to investigate how the rise of digital money has affected efforts to increase green energy use in China. This work contributes to the body of knowledge by using a number of empirical methods, such as regression analysis, parametric quantile estimation, stability diagnostic tests, and sensitivity analysis. This study's results further demonstrate the importance of digital financing in easing the adoption of renewable energy sources throughout China. Financing alternatives for renewable energy projects have increased as a result of digital finance's integration of digital technology with financial services. A wider range of investors has been attracted through crowdfunding, peer-to-peer lending, and other alternative financing models made possible by digital platforms, allowing the development of small and medium-sized renewable energy projects that may have had trouble securing funding through more traditional channels. The impact of digital finance on energy management and optimization is also investigated. As a result, renewable energy sources have been more widely adopted due to increased energy efficiency, better grid integration, and more efficient energy delivery. This study presents substantial evidence of the beneficial benefits of digital finance on renewable energy use in China using rigorous empirical methodologies such as regression analysis, parametric quantile estimation, stability diagnostic tests, and sensitivity analysis. The results highlight the significance of using digital money to boost the use of renewable energy, lessen reliance on fossil fuels, and help create a greener, more sustainable future.

A step toward inclusive green growth: can digital finance be the main engine?

Inclusive green growth (IGG) has become a worldwide consensus to achieve the target of sustainable development goals. Although the prominent role of digital finance (DF) against the pandemic has drawn considerable attention from policymakers, its plausible effect on IGG and underlying mechanisms have not been distinctly explored in academia. The aim of the study is to explore the causal effect of DF on IGG based on prefecture city-level data from 2011 to 2019 in China. To this end, we employed the non-radial direction distance function approach within the global production technology to evaluate the aggregate IGG performance and its three sub-dimensions. The empirical results demonstrate that DF exerts a significant promotional effect on urban IGG. This finding continues to survive in an extensive set of robustness checks using an alternative dependent variable, model specifications, instrumental variable, and difference-in-difference approaches to address the endogeneity concerns. Meanwhile, sub-dimensional regressions show that this positive effect is driven predominantly by the scale economy of DF, while the depth of usage and digitalization playing a minor role. Moreover, we uncover that DF enhances IGG by leveraging greater marginal product of labor rather than capital, improving environmental externalities, increasing fuller employment, and reducing rural-urban income inequality. However, we also reveal the dark side of DF on imbalanced regional development. The promotional effect of DF on IGG is only prominent for cities with better inherent comparative advantages, and we are thus likely to see a widening digital divide resulting from the "Matthew effect" on regional disparity without timely policy interventions.

Untangling the causal mechanisms and spatial dynamics of digital financial development's impact on energy intensity: insights from panel data of Chinese provinces

The prime focus of the present investigation delves into the linkage between digital financial services and energy intensity within the geographic confines of China, utilizing provincial-level panel data spanning from 2011 to 2021. Digital finance has rapidly developed due to changes in information technology, and its role in achieving green transformation, reducing energy consumption, and lowering energy intensity in Chinese society is critical. By conducting empirical analysis utilizing diverse models, we have tested our hypotheses and found that digital finance's improvement can contribute to the reduction in energy intensity at the regional level while still considering endogeneity concerns. This effect is mediated by the promotion of technological innovation and the facilitation of green development in industries. Digital finance's impact on energy intensity is contingent upon resource endowments, such as the level of traditional financial development and the degree of information. Moreover, digital finance's adverse impact on energy intensity becomes more pronounced beyond certain threshold values. However, digital finance can increase energy intensity in neighboring regions through spatial spillover effects. Drawing upon our findings, we recommend bolstering the development of digital finance, augmenting the capability for autonomous innovation, and devising specialized strategies for digital finance advancement to fully harness the potential of digital finance in curbing energy intensity. This study interprets the value of digital finance from the new perspective of energy intensity. By exploring the internal links between digital finance and energy intensity, the study enriches the research results on the impact of digital finance on energy intensity.

Exploring the synergies between digital finance and clean energy: a case study of green bond spillover effects

The impact of digital finance on green bonds and clean energy sources is analyzed. So, the primary objective of this study is to create a unique time-varying causality test to identify the relationship between ecological consciousness and green technology, clean energy, and digital currency. The China region was established using data from 2001 to 2019. A dynamic connection model with spillover is employed to further guarantee stability. The empirical findings reveal that the clean energy to digital finance index (30.544%) and the clean energy to green economy index (30.544%) are the sources for the spillover shocks analysis. because the overall dynamic connection of assets throughout time is affected by financial events. For every additional percentage point that renewable energy sources are employed, long-term environmental costs are lowered by 0.68%. And yet, the transition from renewable energy to digital finance has been characterised by increasing instability and causal significance as it has advanced. The organizational environment is shown to have the second-greatest influence on the growth of the green bond market, behind the state of the local economy and environmental governance. Increasing the marketability of clean energy securities requires stable, predictable legislation that improves our knowledge of the risk profile of these investments.

Digital finance and regional green innovation: the perspective of environmental regulation

The relationship between digital finance and regional green innovation has been partially confirmed, yet the role of environmental regulation in it remains unexplored. Therefore, this paper examines the impact of digital finance on regional green innovation and tests the moderating role of environmental regulation using Chinese city-level data from 2011 to 2019 as a research sample. The results show that digital finance can significantly promote regional green innovation by alleviating regional financing constraints and increasing regional R&D investment. Besides, digital finance has apparent regional difference effects (the contribution of digital finance to regional green innovation is greater in eastern China than in western China, and the development of digital finance in neighbouring regions has a negative transmission effect on local green innovation). Finally, environmental regulation positively moderates the relationship between digital finance and regional green innovation. This paper explores the relationship between digital finance and regional green innovation from the perspective of environmental regulation, providing empirical evidence to promote regional green innovation.

How can digital finance boost enterprises' high-quality development?: evidence from China

As a new industry derived from the traditional financial system and enhanced by emerging technologies, digital finance is significant in microenterprise development. Based on the 2011-2018 Digital Inclusive Finance Index of Peking University, we examine the mechanism-inventory optimization and incremental innovation. We use the data of small and medium-sized enterprises to reveal the effect of digital finance-mismatch correction and defect improvement. The study results show that digital financing significantly improves enterprises' high-quality development. Further research has revealed that digital finance can effectively correct scale, attribute, phase, and industry mismatches. Digital finance alleviates financing constraints, solves the expensive financing problem, and pushes enterprises to deleverage in the economic development process. However, digital finance is still limited for companies with high financing constraints and leverage. Moreover, financial regulation can significantly improve the economic performance of digital finance. The findings provide reliable empirical evidence and policy inspiration for promoting digital finance development, deepening the supply-side structural reform of finance, better serving the real economy, and achieving high-quality economic development.

The impact of digital finance on SMEs financialization: Evidence from thirty million Chinese enterprise registrations

Based on the registration information of 30 million Chinese enterprises, this study innovatively constructs a financialization index based on the text information of enterprise business scope. Then, the impact of digital finance on small and medium-sized enterprise (SME) financialization is examined. Specifically, this study screens out SMEs involved in financial transactions by counting the keyword information in their business scope. The level of SME financialization is measured at the provincial level, based on a large number of registration samples. Empirical results based on panel fixed effects show that digital finance significantly inhibits SME financialization. On average, for each standard deviation increase in digital finance, SME financialization decreases by 0.087 standard deviations. This conclusion remains valid after a series of robustness analyses. A mechanism analysis shows that digital finance inhibits SME financialization by alleviating financing constraints, especially by providing liquidity to SMEs with relatively high financing constraints. In addition, the risk consequences of SME financialization are further examined, and SME financialization is found to significantly increase bankruptcy risk, while digital finance alleviates financing constraints and thus reduces bankruptcy risk. This study provides a new perspective for the governance of SME financialization and the optimization of the survival environment for SMEs in the context of the digital economy.

Does digital financing influence renewable energy performance in China?

The objective of this study is to examine how digital finance influences renewable energy performance in China. Empirical data from China between 2007 and 2019 is used to evaluate the relationship among these variables. The study uses two techniques, quantile regression (QR) and generalized methods of moments (GMM), to draw empirical conclusions. The results reveal that digital finance significantly influences the renewable energy performance, ecological growth, and financial performance of cities in China. Specifically, digital finance accounts for 45.92% of the variation in renewable energy indicators, 27.60% in ecological growth, and 24.39% in the improved financial performance of renewable energy at the city level. The study also observes that the city-level score for digital finance, renewable energy, and other indicators is heterogeneous in movement. Factors contributing to this heterogeneity include high population (16.05%), access to digital banking (23.11%), province-level renewable energy performance (39.62%), household financial stability (22.04%), and household renewable energy literacy (8.47%). Based on these findings, the study recommends practical implications for key stakeholders.

Fintech and investment risk of digital finance: mediating role of clean energy and green bonds through the dynamics of spill over

This study examines how financial technology (FinTech) and green bonds have affected the ability of firms to finance energy efficiency measures by using data obtained from a subset of Chinese companies listed on the A-share market between 2011 and 2021. We apply the quantile-on-quantile method, which allows us to examine the interdependence of time series in each economy separately and yields data on the global and national levels indicating the relationship between the variables. The results show that an increase in both direct and indirect financing for businesses, as well as inter-bank competition, can greatly mitigate the financial limitations that firms suffer as a result of FinTech expansion. Our estimates show that the energy efficiency of the countries we chose improves when they are financed with green bonds across all quantiles of the data. Organizations not owned by the state, SMBs, and the more rapidly developing eastern half of China promise to benefit the most from the moderating effect of FinTech because of the faster pace of development there. The immediate ameliorating effect that financial technology has on reduced lending criteria mostly benefits businesses with either a strong innovation rate or a poor social responsibility performance rate. This is because businesses sharing either of these features are more likely to experiment and develop new products. Both theoretical and practical repercussions of this finding are explored.

Identifying the nexus among environmental performance, digital finance, and green innovation: New evidence from prefecture-level cities in China

Globally, nations are increasingly focusing on green innovation in their environmental protection efforts as part of sustainable development, and digital finance is playing a vital role in enhancing green innovation. Employing annual data from 220 prefecture-level cities between 2011 and 2019, we empirically analyze the connections among environmental performance, digital finance, and green innovation via the Karavias panel unit root test with structural breaks, the Gregory-Hansen structural break cointegration test and pooled mean group (PMG) estimation. The following four points are the key conclusions: (1) The results support cointegration links between these variables when structural breaks are considered. (2) The PMG estimation outcomes indicate that green innovation and digital finance may have a favorable long-term effect on environmental performance. (3) For better environmental performance and more green innovation, the level of digitalization of digital finance is crucial. (4) The potential of digital finance and green innovation to improve environmental performance has not been fully realized in the western region of China.

How does digital finance affect green technology innovation in the polluting industry? Based on the serial two-mediator model of financing constraints and research and development (R&D) investments

This paper evaluates the importance of combining digital finance with conventional finance and information technology (IT) to bring new opportunities for green technology innovation and transformation within polluting industries. This study builds a theoretical framework "digital finance → financing constraints → R&D investment → green technology innovation" to demonstrate the causal mechanism between digital finance and firms' green innovation by using the serial two-mediator model. The study shows that digital finance could reduce financial constraints and increase R&D investments, thereby improving enterprises' green technology innovation in the long run. Moreover, based on the moderating effect model, we find that digital transformation in a polluting firm tends to strengthen the linkage between digital finance and green technology innovation through supervising the use of loans, reviewing green technology innovation projects, and reducing managers' short-sighted behaviors to avoid agency problems. Furthermore, the heterogeneity analysis shows that the effects of digital finance on green innovation are more apparent in state-owned enterprises and the regions with lower financial development and with higher financial supervision.

Does digital finance promote the "quantity" and "quality" of green innovation? A dynamic spatial Durbin econometric analysis

Based on the panel data of 284 prefecture-level cities in China, this paper uses the dynamic spatial Durbin model to explore the impact of digital finance on green innovation from the dimensions of "quantity" and "quality." The results show that digital finance has a positive impact on both the quality and quantity of green innovation in local cities, but the development of digital finance in neighboring cities has a negative impact on the quantity and quality of green innovation in local cities, and the impact on the quality of green innovation is greater than that on the quantity of green innovation. And after a series of robustness tests, it was shown that the above conclusions are robust. In addition, digital finance can have a positive impact on green innovation mainly through industrial structure upgrading and informatization level. Heterogeneity analysis shows that the breadth of coverage and the degree of digitization are significantly related to green innovation, and digital finance has a more significant positive impact in eastern cities than in mid-western cities.

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.

What role does digital finance play in low-carbon development? Evidence from five major urban agglomerations in China

In the epoch of the digital economy, digital finance (DF) has become an indispensable engine driving the high-quality development of the Chinese economy. The issues of how DF can be used to alleviate environmental pressure and how a long-term governance mechanism for carbon emissions reduction be formed have become particularly important. Based on the panel data of five national urban agglomerations in China from 2011 to 2020, this study utilizes the panel double fixed-effects model and chain mediation model to verify the impact mechanism of DF on carbon emissions efficiency (CEE). Some valuable findings are drawn below. First, the overall CEE of the urban agglomerations has potential for improvement, and the CEE and DF development level of each urban agglomeration have regional heterogeneity. Second, a U-shaped correlation is observed between DF and CEE. Technological innovation and industrial structure upgrading have a chain mediating effect in DF affecting CEE. In addition, the breadth and depth of DF have a notable negative impact on CEE, and the digitalization degree of DF shows a significant positive correlation with CEE. Third, the influencing factors of CEE have regional heterogeneity. Finally, this study provides relevant suggestions based on the empirical conclusions and analysis.

Emission reduction effect of digital finance: evidence from China

This paper investigates the relationship between digital finance and carbon emissions and explores the ecological effects of digital finance. Based on a panel data of 256 cities in China from 2011 to 2018, this paper investigates the impact of digital finance on carbon emissions and its intrinsic mechanisms. First, digital finance significantly suppresses the intensity of regional carbon emission, and the breadth of coverage, depth of use, and degree of digital support of digital finance together curb regional carbon emissions, with the strongest suppressive effect being the breadth of coverage. In addition, the regression results remain significant after a series of robustness tests. Second, it reveals the potential mechanism of digital finance to curb urban carbon emissions. These mechanisms include the three channels: promoting industrial advancement, green technology innovation, and optimizing labor resource allocation. Third, the heterogeneity test finds that the energy saving and emission reduction effects of digital finance are significantly stronger in non-low-carbon pilot cities with low urbanization rates, confirming the emission reduction utility of digital finance development. Therefore, we should take advantage of digital finance to improve the green development of financial services and adopt diverse policy measures according to local conditions to maximize the ecological effects of digital finance on energy saving and emission reduction. In the context of the development strategy of "carbon peaking and carbon neutral," this study has some implications for management in developing a regional green development system supported by digital finance.

A blessing in disguise-The effect of China's Covid-19 health code system on older people's mobile payment usage

In early 2020, China launched a health code system to combat the spread of Covid-19. The required health code led to a drastic uptake of smartphone usage among older residents. This paper uses rich commercial data from the Zhejiang Province of China to track the change in consumption among the older population. The paper finds that older people significantly increased spending after switching to mobile payment. The paper contributes to the literature by identifying the unexpected windfall from the effect of the health code mandate on the older population and demonstrating that digital payment works well in the older population.

Digital financial inclusion and environmental entrepreneurship: evolution of state legal environmental responsibility in China

This investigation attempts to look at how digital finance and environmental taxes affect environmental entrepreneurship. We have used the QARDL model to evaluate the short- and long-run estimations. The main findings of the QARDL model confirm that digital finance is vital in promoting the environmental entrepreneurship model in the long run. In contrast, in the short run, digital finance does not significantly impact environmental entrepreneurship. Moreover, environment-related taxes, environmental innovations, and economic development promote environmental entrepreneurship in the long run across most quantiles. However, in the short run, environment-related taxes and economic development do not exert any significant impact on environmental entrepreneurship in almost all quantiles, while environmental innovation promotes environmental entrepreneurship in most quantiles. Further, asymmetric effects of digital finance (ATM and debit card), environment-related taxes, environmental innovations, and economic development are confirmed in the long run; in the short run, asymmetric effects are observed in the case of environmental innovation in both the models. Following the results, we suggest that the public and private sectors should do more financing to promote ecopreneurship in society. Moreover, more taxes should be imposed on entrepreneurs who do not adopt green practices.

Is the development of digital finance conducive to reducing haze pollution? Empirical evidence from 284 cities in China

Using the panel data of 284 cities from 2011 to 2020 in China, this research statistically tests the direct impact and internal mechanism of digital finance on urban haze pollution. The results show the following: (1) the development of digital finance can significantly inhibit the concentration of urban haze, and there is a stronger inhibitory effect in areas where the government pays more emphasis to haze pollution and in cities with high levels; (2) after mechanism inspection, it is found that digital finance can indirectly promote urban haze pollution by influencing green innovation, cooperative innovation, industrial structure upgrading, and producer service agglomeration; (3) the results of the spatial econometric analysis show that digital finance can suppress the haze concentration in the region and simultaneously inhibit the neighboring areas through spillover effects; (4) further inspection shows that the spatial spillover effect of digital finance on haze pollution has an obvious spatial attenuation feature, demonstrating that a dense area of spatial spillover is within 310 km. The spillover effect gradually disappears when the threshold is exceeded.

Does digital finance enhance industrial green total factor productivity? Theoretical mechanism and empirical test

The development and application of digital finance has brought profound changes to the real economy, and its impact on industrial green total factor productivity is worthy of attention and evaluation. The industrial green total factor productivity of each province in China is measured by using EBM-ML index with the provincial panel data collected from 2011 to 2020. The panel fixed effects model is used to estimate the impact of digital finance on industrial green total factor productivity. The intermediary effect model is constructed to analyze its conduction mechanisms. The heterogeneity of the impact of digital finance on industrial green total factor productivity is further explored. The results indicate that digital finance makes a significant contribution to the promotion of industrial green total factor productivity. Digital finance indirectly promotes the enhancement of industrial green total factor productivity by promoting technological innovation, driving industrial upgrading and stimulating entrepreneurial dynamism. The impact of digital finance on industrial green total factor productivity has obvious sub-dimension heterogeneity and regional heterogeneity. Based on the above conclusions, we also suggest policy recommendations such as unblocking the conduction channels of digital finance and implementing the differentiated digital finance development strategy. The highlight of this paper is that it takes digital finance as the entry point and shifts the research content to the real economy, broadening the research perspective of "digital finance".

How does digital finance affect industrial structure upgrading? Evidence from Chinese prefecture-level cities

Digital finance is playing an increasingly prominent role in economic development. This paper examines the impact of digital finance on industrial structure upgrading based on panel data from 289 Chinese prefecture-level cities from 2011 to 2020. The paper adopts fixed effects, mediating effects, and spatial econometric models and the findings are as follows. First, digital finance development significantly boosts industrial structure upgrading in Chinese cities. The evidence remains valid after various robustness tests. Second, digital finance and industrial structure upgrading exhibit positive spatial spillover effects. Third, digital finance indirectly affects industrial structure upgrading through innovation, entrepreneurship and the structure of household consumption channels. Fourth, the influence of digital finance is more significant in cities with more developed economies, less financialization and lower income inequality. Finally, among the sub-indicators of digital finance, the breadth of coverage plays the most significant role, inspiring policymakers and financial institutions to speed up the digitization infrastructure in backward areas.

Can digital finance reduce carbon emission intensity? A perspective based on factor allocation distortions: evidence from Chinese cities

The world is facing the challenges of climate change and energy structure adjustments. The role of digital finance, a new branch of business that combines digital technology and traditional financial products, in reducing global carbon emissions needs to be studied. This paper uses panel data on 280 cities in China from 2011 to 2019 to empirically examine the efficacy of digital finance for governing carbon emission reductions and the mechanism by which it does so. The results show that (1) digital finance can facilitate carbon emission reductions and help reduce carbon emission intensity within regions; (2) digital finance helps promote the rational allocation of resources and alleviates factor distortions by encouraging firms to rationally use their own factor endowments so as to reduce carbon emission intensity, which holds robustly after considering the endogenous issues such as possibly omitting variables and collinearity; and (3) differences in geographical location, the vitality of regional innovation and entrepreneurship, regional willingness to protect the environment, and environmental protection levels lead to heterogeneity in the effect of digital finance on carbon emission intensity. Therefore, it is necessary to vigorously develop digital finance as a long-term tool for carbon governance.

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.

The impact of digital finance on pollutants emission: evidence from chinese cities

This paper investigates whether emerging digital finance can reduce environmental pollution in China based on data from 273 of China's prefecture-level cities spanning the period from 2010 to 2017. The dynamic spatial econometric models (DSDM) find a significant negative association between digital finance and pollutants emissions, and the impacts vary among regions and urban development stages. The impact mechanism test proves that digital finance reduces pollutants emissions through technological innovation, structural adjustment, and capital allocation effects. In addition, we explore the different dimensions of digital finance and find that the depth of use has a more practical effect on reducing emissions. Further analyses based on the threshold model show an inverted N-shaped nexus between digital finance and emissions. The threshold effect also exists in terms of the traditional financial level. Our study proves that emerging digital finance crucially affects its potential benefits to environment and provides an empirical basis for policy-makers to accelerate the digitalization of financial markets, particularly paying attention to its emission-reduction effects.

Does the development of digital finance curb carbon emissions? Evidence from county data in China

Reducing carbon emissions is the key to fulfilling the "double carbon commitment" and promoting the green transformation of the economy. The financial sector is the forerunner of change in economic development. The rapid development of digital finance has disrupted the traditional financial operation mode and has had a significant impact on economic development and environmental quality. This paper explores the impact of digital finance development on carbon emissions using carbon emission data from 2011 to 2017 in China's counties and combining it with the Digital Inclusive Finance Index of Peking University. The findings are as follows: (1) The development of digital finance can curb carbon emissions, and this causal relationship still holds through a series of robustness tests. The greater the carbon emissions, the better the carbon suppression effect of the development of digital finance. (2) When regions face strict financial regulation and environmental constraints, the development of digital finance can be more effective in reducing carbon emissions. The existence of a digital divide in general can weaken the disincentive effect of the development of digital finance on carbon emissions. (3) The development of digital finance can promote the development of green finance, enhance the level of green technological innovation, improve green total factor productivity, and transform energy structures, thus curbing carbon emissions. This paper not only enriches the literature on the development of digital finance and the environment but also provides a reference for government departments to improve the development strategy of digital finance and achieve "carbon peaking and carbon neutrality."

The impact of heterogeneous environmental regulation on high-quality economic development in China: based on the moderating effect of digital finance

Under the new normal of economic growth, implementing environmental regulation policies and developing digital finance have become essential factors affecting high-quality economic development. This study aims to examine whether environmental regulation has a positive effect on high-quality economic development and what impact digital finance has in the process of environmental regulation affecting high-quality economic development. This study uses the panel data of 30 provinces in China from 2011 to 2019 to measure the high-quality economic development by using the entropy-TOPSIS method based on constructing an indicator system for high-quality economic development. Then, environmental regulations are classified into four categories: economic, command based, legal, and supervised, and digital finance is included in the analysis framework. The impact of heterogeneous environmental regulations on high-quality economic development and the indirect influence mechanism played by digital finance are empirically analyzed. The results show that command-based environmental regulation significantly hinders improving economic development quality. In contrast, supervised environmental regulation plays a significant positive role and can therefore serve as an essential driver of high-quality economic development. In addition, digital finance plays a significant positive moderating role in the influence of environmental regulation on the economy's high-quality development level. After the robustness test, the conclusion is still valid. Further heterogeneity analysis shows that the impact of environmental regulation on high-quality economic development and the moderating effect of digital finance differ across dimensions of economic quality development and have regional heterogeneity. The research findings are conducive to formulating appropriate environmental regulation policies and giving full play to the positive role of digital finance, providing support for promoting high-quality economic development.