The coupling and coordinated development of digital finance and green finance under the vision of “dual carbon” and the examination of carbon emission reduction effect

Abstract

This paper measures the coupling coordination development level between digital finance and green finance in Chinese provinces and investigates their carbon emission reduction effects. The study reveals that green digital finance has a significant carbon emission reduction effect, displaying an inverted “U” shape with a marginal effect that first increases and then decreases. There are substantial differences in the moderating effects of formal environmental regulation and informal environmental regulation. Furthermore, in the central and western regions, areas with higher financial regulatory intensity, and non-resource-based provinces, the carbon emission reduction effect of green digital finance is more pronounced.

Keywords

• Digital finance
• Green finance
• Carbon emission reduction effect
• Heterogeneous environmental regulation
• Financial regulation