Digital finance, Green Innovation and environmental pollution

Runhe Song

doi:10.54691/bcpbm.v19i.844

Authors

Runhe Song

DOI:

https://doi.org/10.54691/bcpbm.v19i.844

Keywords:

digital finance, Green innovation, Pollution discharge, Threshold effect, Impulse function

Abstract

Based on the panel data of 282 cities at prefecture level and above in China from 2011 to 2019, this paper uses the fixed effect model to explore the impact of digital finance, green innovation and their associated effects on pollution emissions, and further builds a panel threshold model with digital finance as the threshold to explore the pollution reduction mechanism of green innovation. At the same time, the impulse response function is used to explore the long-term continuation mode and impact effect of the two on pollution emission. Finally, the different dimensions of digital finance, the degree of Internet use and regional heterogeneity are analyzed. The results show that: firstly, digital finance and green innovation significantly reduce pollution emissions during the period; Secondly, green innovation plays a positive and nonlinear role in promoting pollution reduction at different digital financial levels. Third, both digital finance and green innovation will reduce pollution emission level in the long term and the driving effect will gradually slow down over time. This paper provides reference value for the study of the relationship between digital finance, green innovation and pollution reduction, and has innovative and practical significance.

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