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Pathway to carbon reduction in China: The role of coupling synergies of the digital economy and green finance

Mingyang You, Bo Wang, Jun Zhao and Hongyun Huang

Economic Analysis and Policy, 2025, vol. 86, issue C, 258-273

Abstract: On the basis of calculating the coupling of synergies of the digital economy and green finance (DEGF), this study utilizes the data of 30 provinces from 2014 to 2021 to explore whether this coupling accelerates carbon reduction. This study also analyses the heterogeneity and mechanism. We find that the coupling of synergies of the DEGF has increased substantially during the sample period, from mildly disordered to barely synergy. Moreover, this study finds that the coupling of synergies of the DEGF has helped stimulate carbon-reduction activities significantly. This effect is particularly prominent in the western area and non-free trade zone provinces. Regarding the mechanism routes, increasing economic size and improved technical innovation are valid transmission paths of the coupling of synergies of the DEGF for boosting carbon mitigation. Accordingly, we propose some useful and practical policy implications.

Keywords: Carbon reduction; Digital economy; Green finance; Coupling synergy; China (search for similar items in EconPapers)
JEL-codes: C23 Q54 Q55 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:86:y:2025:i:c:p:258-273

DOI: 10.1016/j.eap.2025.03.027

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