Digital finance, environmental regulation and emission reduction in manufacturing industry: New evidence incorporating dynamic spatial-temporal correlation and competition

Bin Yan, Feng Wang, Tian Chen, Siyu Liu and Xiaoxuan Bai

International Review of Economics & Finance, 2023, vol. 83, issue C, 750-763

Abstract: Applying the Peking University Digital Financial Inclusion Index from 2011 to 2018, we explore the dynamic spatial-temporal correlation effects of digital finance and environmental regulation on manufacturing carbon emissions, emphasizing competition and resolving endogeneity issues. The result reveals that: (1) digital finance reduces local carbon emissions while increasing those of neighbors to a large extent, the overall reduction effect gradually emerges over time; (2) environmental regulation mitigates carbon emissions in both the short and long term with a marginal increasing trend; and (3) financial institution competition promotes these reduction effects. Combining “effective markets” and “responsive governments” yields superior emission reduction.

Keywords: Digital finance; Environmental regulation; Financial institution competition; Manufacturing industry; Carbon emissions (search for similar items in EconPapers)
JEL-codes: G20 L60 Q54 Q58 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1059056022002660
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:reveco:v:83:y:2023:i:c:p:750-763

DOI: 10.1016/j.iref.2022.10.025

Access Statistics for this article

International Review of Economics & Finance is currently edited by H. Beladi and C. Chen

More articles in International Review of Economics & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().