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How does digital financial inclusion impact China: The case of carbon emissions
Date Issued
2025
Publisher
Informa UK Limited
Journal
ISSN
0003-6846
1466-4283
Citation
Applied Economics, 2025, vol. 57(60), pp. 11187-11203.
Type
Peer Reviewed Journal Article
Abstract
This paper studies the impact of digital financial inclusion (DFI) on China’s carbon emissions and aims to inform evidence-based policies using an artificial neural networks approach. We show that DFI reduces CO2 emissions per capita, particularly in moderately industrialized, technologically underdeveloped, and less urbanized cities. Additionally, we observe a more pronounced U-shaped relationship between the value added by the secondary industry and CO2 emissions per capita in cities with high levels of DFI.This emphasizes the need for implementing additional environmental policies to mitigate the negative effects of later stages of secondary industry development in highly digitally inclusive cities. The findings speak to policymakers, researchers, and practitioners who seek sustainable development solutions.
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