In the information age, how
to release the positive effect of finance on green economy is a question that
needs to be answered in the modern society. Using
the panel data of 30 provinces
in China from 2011 to 2020 as the research sample, we
evaluate the impact of digital financial inclusion on green development by
calculating green total factor productivity. The results show that: Digital financial inclusion can promote
regional green development significantly. This finding still remains valid
after robustness tests. Moreover, the contribution of digital financial
inclusion to green development is mainly
reflected in technological advancement. While the positive impact of each
dimension of digital financial inclusion on green development is also different,
showing a decreasing trend in terms of coverage breadth, usage depth and digitalization. In
further analysis, from the perspective of industrial structure optimization and
scientific and technological innovation, we find that digital financial inclusion
can improve the green development by increasing the rationalization and advancement
of industrial structure as well as driving technological innovation. Using the panel threshold model, we find that there are double thresholds for industrial structure rationalization as well as three
thresholds for technology innovation, digital
financial inclusion displays a non-linear impact on green development.
JEL classification numbers: G20, O31.
Keywords: Digital financial inclusion, Green development, Green total factor productivity,
Industrial structure, Technological innovation.