Electronic payment, natural environment and household consumption: Evidence from China household finance survey

Jiayi Li, Sumei Luo and Guangyou Zhou

International Review of Financial Analysis, 2023, vol. 85, issue C

Abstract: In this paper, whether and how electronic payment affects households' consumption decisions are discussed. Data of China Household Finance Survey from 2011 to 2017 are adopted to carry out empirical tests. It is found that electronic payment would significantly induce households to consume more in discretionary goods. The potential mechanism lies in that the electronic payment cuts down transaction costs of venturing out or carrying banknotes that may hinder consumption. Using the weather conditions near the household location, this paper finds that the electronic payment would increase a household's discretionary consumption more significantly when the rain is heavy or the sunshine is weak. But necessary consumption like medical care is unaffected. It is found that electronic payment increases consumption more significantly in urban, well-educated and young households.

Keywords: Electronic payment; Household consumption; Natural environment; Transaction costs (search for similar items in EconPapers)
JEL-codes: D12 E20 Q51 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1057521922004227
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:85:y:2023:i:c:s1057521922004227

DOI: 10.1016/j.irfa.2022.102472

Access Statistics for this article

International Review of Financial Analysis is currently edited by B.M. Lucey

More articles in International Review of Financial Analysis from Elsevier
Bibliographic data for series maintained by Catherine Liu ().