Does the Development of Digital Finance Contribute to Haze Pollution Control? Evidence from China

Ke-Liang Wang, Rui-Rui Zhu and Yun-He Cheng
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Ke-Liang Wang: School of Economics, Ocean University of China, Qingdao 266011, China
Rui-Rui Zhu: School of Economics, Ocean University of China, Qingdao 266011, China
Yun-He Cheng: School of Economics and Management, Anhui University of Science and Technology, Huainan 232011, China

Energies, 2022, vol. 15, issue 7, 1-21

Abstract: Mitigating haze pollution is of practical significance to the green economy, and the development of digital finance may help achieve this goal. However, the effect of digital finance on haze pollution has not been systematically explained. Based on Chinese prefectural panel data for the 2011–2016 period, this study on haze concentration, technological innovation, and digital inclusive finance index as the dependent variable, mediating variable, and the core independent variable, respectively, investigated whether digital finance has improved haze pollution control in China using fixed effect (FE) and random effect (RE) models, a mediating effect model, a threshold panel model, and a dynamic spatial Durbin model (SDM). Four key results were obtained. (1) Digital finance significantly decreased haze pollution. After accounting for potential endogeneity, this conclusion was still valid. (2) The analysis of the influencing mechanism showed that digital finance was conducive to haze reduction by promoting regional innovation capabilities. (3) There was a nonlinear relationship between the influence of digital finance and haze pollution. Specifically, the impact of digital finance on haze pollution has gradually increased with the improvement of regional innovation capabilities. (4) Haze pollution displayed a significant positive spatial agglomeration in China. Digital finance can alleviate local haze pollution but will aggravate haze pollution in adjacent areas. Based on the results of this study, some pertinent policy suggestions were proposed.

Keywords: digital finance; haze pollution; mediating effect; nonlinear effect; spatial spillover effect (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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