Abstract
Based on the exogenous shock of digital financial development in China in 2013, a difference-in-differences (DID) model is set up in this paper to investigate the causal relationship between digital financial development and haze pollution reduction. The finding of the paper is that a one standard deviation increase in digital finance after 2013 decreases the PM2.5 concentrations by 0.2708 standard deviations. After a number of robustness checks, like placebo tests, instrumental variable (IV) estimations, eliminating disruptive policies, and using alternative specifications, this causal effect is not challenged. In addition, this paper explores three potential mechanisms of digital finance to reduce haze pollution: technological innovation, industrial upgrading, and green development. Moreover, the heterogeneous effects signify that the usage depth of digital finance works best in haze pollution reduction. Digital finance has more positive effects in cities in the north and those with superior Internet infrastructure and higher levels of traditional financial development. However, the quantile regression estimates suggest that for cities with light or very serious haze pollution, the positive impact of digital finance is limited. These findings supplement the research field on the environmental benefits of digital finance, which provides insights for better public policies about digital financial development to achieve haze pollution reduction.
Funder
Fundamental Research Funds for the Central Universities
Subject
Public Health, Environmental and Occupational Health
Cited by
9 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献