Assessing the Contribution of Green Finance and Digital Economic Development to Regional Carbon Emission Mitigation

This study examines the relationship between green finance, the digital economy, and efforts to reduce carbon emissions. The analysis employs a comprehensive dataset covering the period from 2010 to 2022, collected from thirty-one provinces, autonomous regions, and municipalities across China. The findings reveal several important insights. First, green finance plays a significant role in promoting regional carbon emission reduction. Similarly, the development of the digital economy also contributes to lowering regional carbon emissions. Furthermore, green technology innovation serves as a key moderating factor in the relationship between green finance and carbon emission mitigation. The results also indicate the presence of a threshold effect in the influence of green finance on regional carbon emission reduction, with varying impacts depending on regional population size. In addition, the contribution of green finance to carbon emission reduction differs across regions, with the strongest impact observed in western China, followed by the central region, while its effect in the eastern region is relatively weaker. Likewise, the digital economy demonstrates regional variations in its influence on carbon emission reduction, showing a stronger contribution in eastern regions, whereas its effect appears less pronounced in the central and western regions.