The Impact of Digital Inclusive Finance on Urban Carbon Emission Efficiency: Evidence from China

This research explores the role of digital inclusive finance in improving urban carbon emission efficiency, based on data from 282 prefecture-level cities in China and using a fixed-effects model. The analysis shows that digital finance positively impacts carbon efficiency, with significant regional differences. The effect is more pronounced in the eastern region, attributed to its advanced development level. Among the various aspects of digital finance, broader accessibility exerts a stronger influence on carbon efficiency than service diversification. Furthermore, digital finance drives green technological innovation, which further enhances urban carbon efficiency. The study emphasizes the importance of increasing access to digital finance in less developed areas and leveraging financial platforms to encourage green innovation, contributing to sustainable urban development and carbon reduction.