Carbon co-benefits of digital economy and green finance: empirical evidence from China

Abstract Addressing the carbon co-benefits of policy tools requires simultaneous improvements in both the quantity and quality of carbon abatement to achieve long-term sustainability and equity. Driven by digital technologies and bolstered by green capital, the combination of the digital economy and...

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Main Authors: Yayun Ren, Xiaohang Xu, Yantuan Yu, Zhenhua Zhang
Format: Article
Language:English
Published: BMC 2025-07-01
Series:Carbon Balance and Management
Subjects:
Online Access:https://doi.org/10.1186/s13021-025-00311-6
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author Yayun Ren
Xiaohang Xu
Yantuan Yu
Zhenhua Zhang
author_facet Yayun Ren
Xiaohang Xu
Yantuan Yu
Zhenhua Zhang
author_sort Yayun Ren
collection DOAJ
description Abstract Addressing the carbon co-benefits of policy tools requires simultaneous improvements in both the quantity and quality of carbon abatement to achieve long-term sustainability and equity. Driven by digital technologies and bolstered by green capital, the combination of the digital economy and green finance (DEGF) establishes an effective mechanism for attaining sustainable development goals. Treating the coordinated implementation of the National Big Data Comprehensive Pilot Zones (NBDCPZ) and Green Finance Reform and Innovation Pilot Zones (GFRIPZ) policies in China as a quasi-natural experiment, we identify the carbon co-benefits of DEGF using the Synthetic Control Method with penalized regression technique. Empirical findings show that DEGF significantly promotes simultaneous improvements in both the quantity and quality of carbon mitigation. These findings are robust across various validation tests, including time-placebo test, alternative model specification, and double machine learning algorithms. According to mechanisms analysis, improving green technological innovation and human capital level are the main channels that DEGF produces carbon co-benefits. The study provides China and other emerging economies seeking to promote sustainable development through digital-green integration with policy-relevant implications.
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publishDate 2025-07-01
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series Carbon Balance and Management
spelling doaj-art-930ca8e73d05422580561268f22ee7fb2025-08-20T03:03:23ZengBMCCarbon Balance and Management1750-06802025-07-0120111810.1186/s13021-025-00311-6Carbon co-benefits of digital economy and green finance: empirical evidence from ChinaYayun Ren0Xiaohang Xu1Yantuan Yu2Zhenhua Zhang3School of Economics, Guizhou University of Finance and EconomicsSchool of Economics, Guizhou University of Finance and EconomicsSchool of Economics and Trade, Guangdong University of Foreign StudiesSchool of Economics, Lanzhou UniversityAbstract Addressing the carbon co-benefits of policy tools requires simultaneous improvements in both the quantity and quality of carbon abatement to achieve long-term sustainability and equity. Driven by digital technologies and bolstered by green capital, the combination of the digital economy and green finance (DEGF) establishes an effective mechanism for attaining sustainable development goals. Treating the coordinated implementation of the National Big Data Comprehensive Pilot Zones (NBDCPZ) and Green Finance Reform and Innovation Pilot Zones (GFRIPZ) policies in China as a quasi-natural experiment, we identify the carbon co-benefits of DEGF using the Synthetic Control Method with penalized regression technique. Empirical findings show that DEGF significantly promotes simultaneous improvements in both the quantity and quality of carbon mitigation. These findings are robust across various validation tests, including time-placebo test, alternative model specification, and double machine learning algorithms. According to mechanisms analysis, improving green technological innovation and human capital level are the main channels that DEGF produces carbon co-benefits. The study provides China and other emerging economies seeking to promote sustainable development through digital-green integration with policy-relevant implications.https://doi.org/10.1186/s13021-025-00311-6Digital economy and green financeCarbon co-benefitsSynthetic control methodGreen technological innovationHuman capital level
spellingShingle Yayun Ren
Xiaohang Xu
Yantuan Yu
Zhenhua Zhang
Carbon co-benefits of digital economy and green finance: empirical evidence from China
Carbon Balance and Management
Digital economy and green finance
Carbon co-benefits
Synthetic control method
Green technological innovation
Human capital level
title Carbon co-benefits of digital economy and green finance: empirical evidence from China
title_full Carbon co-benefits of digital economy and green finance: empirical evidence from China
title_fullStr Carbon co-benefits of digital economy and green finance: empirical evidence from China
title_full_unstemmed Carbon co-benefits of digital economy and green finance: empirical evidence from China
title_short Carbon co-benefits of digital economy and green finance: empirical evidence from China
title_sort carbon co benefits of digital economy and green finance empirical evidence from china
topic Digital economy and green finance
Carbon co-benefits
Synthetic control method
Green technological innovation
Human capital level
url https://doi.org/10.1186/s13021-025-00311-6
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AT yantuanyu carboncobenefitsofdigitaleconomyandgreenfinanceempiricalevidencefromchina
AT zhenhuazhang carboncobenefitsofdigitaleconomyandgreenfinanceempiricalevidencefromchina