Enhancing the Conversion Efficiency of Ecological Product Value Through Digital Finance: Measurement and Mechanism Analysis

The conversion of ecological product value is vital for reconciling economic growth with environmental sustainability. As a financial innovation that combines digital technology with inclusive finance, digital finance has emerged as a key driver of this process. Drawing on Chinese provincial panel data from 2011 to 2020, this study shows that digital finance significantly enhances the conversion efficiency of ecological product value (CEEPV), and the results remain robust after addressing endogeneity and sensitivity concerns. The analysis reveals that the depth of use and the level of digitalization of digital finance strongly promote CEEPV, while coverage breadth has no significant effect. Mechanism tests indicate that digital finance improves CEEPV mainly through alleviating rural financing constraints, fostering entrepreneurship, encouraging green innovation, enhancing agricultural social services, and supporting rural e-commerce. In addition, traditional finance and financial regulation complement digital finance in strengthening CEEPV. Heterogeneity analysis further shows that the positive effect of digital finance is concentrated in provinces with higher levels of marketization and urbanization. Overall, the findings underscore the importance of accelerating digital finance development and implementing region-specific policies to maximize its potential in advancing ecological product value realization.