Haze pollution reduction in Chinese cities

Has digital financial development played a role

Bibliographic Data

ID22076589
AuthorsChunkai Zhao (0000-0003-1918-9598, South China Agricultural University), Bihe Yan (Shanghai University of Finance and Economics, corresponding author)
Year2022
Volume10
Pages942243-942243
Publication date2022-08-24
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueFrontiers in Public Health (JOURNAL)
Journal identifiersISSN: 2296-2565 • E-ISSN: 2296-2565
PublisherFrontiers Media SA (PUBLISHER • CH)
DOI10.3389/fpubh.2022.942243
PMID36091557
OpenAlexW4292879260
LanguageEN
Citations received4
References cited82

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 PM 2.5 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

Business · Econometrics · Economics · Environmental economics · Geography · Haze · Instrumental variable · Meteorology · Economic Growth and Development · Energy, Environment, and Transportation Policies · Energy, Environment, Economic Growth · Finance · Pollution

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