Research Article

DIGITAL FINANCIAL INCLUSION AND URBAN CARBON EMISSIONS: AN EMPIRICAL STUDY BASED ON NONLINEAR CHARACTERISTICS AND MECHANISM TESTING

Volume: 15 Number: 1 June 30, 2026
Journal of Business Economics and Finance Cover
Journal of Business Economics and Finance
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DIGITAL FINANCIAL INCLUSION AND URBAN CARBON EMISSIONS: AN EMPIRICAL STUDY BASED ON NONLINEAR CHARACTERISTICS AND MECHANISM TESTING

Abstract

Purpose- This study intends to investigate the nonlinear relationship between Digital Financial Inclusion (DFI) and carbon emission intensity in Chinese cities. It seeks to uncover the potential "U-shaped" pattern of DFI's environmental effects and examine the underlying mechanisms, including technological innovation and urbanization, while considering variations across different city types. Methodology- Applying balanced panel data from 270 Chinese cities spanning 2012 to 2022, the study employs a two-way fixed effects model and the system Generalized Method of Moments (GMM) for empirical analysis. The research examines the nonlinear impact of DFI on carbon emission intensity and explores the mediating role of technological innovation and the moderating effect of urbanization. Findings- The results indicate that DFI significantly reduces carbon emission intensity, but this effect follows a distinct "U-shaped" pattern, with a turning point at an index value of 137, revealing diminishing marginal returns in emission reduction benefits. Technological innovation is identified as a key mediating channel. Urbanization negatively moderates the emission reduction effect, reflecting an "inclusive compensation" characteristic of DFI in less developed areas. Furthermore, resource-based cities exhibit a stronger initial emission reduction effect but face more severe U-shaped rebound risks. Conclusion- We provide empirical evidence supporting the design of differentiated emission reduction strategies. It highlights the importance of considering the nonlinear dynamics of DFI and local characteristics—such as urbanization and city type—in formulating effective environmental policies.

Keywords

References

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Details

Primary Language

English

Subjects

Finance

Journal Section

Research Article

Authors

Publication Date

June 30, 2026

Submission Date

March 19, 2026

Acceptance Date

May 18, 2026

Published in Issue

Year 2026 Volume: 15 Number: 1

DOI

https://doi.org/10.17261/Pressacademia.2026.2035

IZ

https://izlik.org/JA92UB65CF

Cite

RIS / Bibtex
APA
Huo, J., Gu, Y., Guo, W., & Xu, W. (2026). DIGITAL FINANCIAL INCLUSION AND URBAN CARBON EMISSIONS: AN EMPIRICAL STUDY BASED ON NONLINEAR CHARACTERISTICS AND MECHANISM TESTING. Journal of Business Economics and Finance, 15(1), 78-85. https://doi.org/10.17261/Pressacademia.2026.2035
AMA
1.Huo J, Gu Y, Guo W, Xu W. DIGITAL FINANCIAL INCLUSION AND URBAN CARBON EMISSIONS: AN EMPIRICAL STUDY BASED ON NONLINEAR CHARACTERISTICS AND MECHANISM TESTING. JBEF. 2026;15(1):78-85. doi:10.17261/Pressacademia.2026.2035
Chicago
Huo, Jinkun, Yongyi Gu, Wei Guo, and Weilun Xu. 2026. “DIGITAL FINANCIAL INCLUSION AND URBAN CARBON EMISSIONS: AN EMPIRICAL STUDY BASED ON NONLINEAR CHARACTERISTICS AND MECHANISM TESTING”. Journal of Business Economics and Finance 15 (1): 78-85. https://doi.org/10.17261/Pressacademia.2026.2035.
EndNote
Huo J, Gu Y, Guo W, Xu W (June 1, 2026) DIGITAL FINANCIAL INCLUSION AND URBAN CARBON EMISSIONS: AN EMPIRICAL STUDY BASED ON NONLINEAR CHARACTERISTICS AND MECHANISM TESTING. Journal of Business Economics and Finance 15 1 78–85.
IEEE
[1]J. Huo, Y. Gu, W. Guo, and W. Xu, “DIGITAL FINANCIAL INCLUSION AND URBAN CARBON EMISSIONS: AN EMPIRICAL STUDY BASED ON NONLINEAR CHARACTERISTICS AND MECHANISM TESTING”, JBEF, vol. 15, no. 1, pp. 78–85, June 2026, doi: 10.17261/Pressacademia.2026.2035.
ISNAD
Huo, Jinkun - Gu, Yongyi - Guo, Wei - Xu, Weilun. “DIGITAL FINANCIAL INCLUSION AND URBAN CARBON EMISSIONS: AN EMPIRICAL STUDY BASED ON NONLINEAR CHARACTERISTICS AND MECHANISM TESTING”. Journal of Business Economics and Finance 15/1 (June 1, 2026): 78-85. https://doi.org/10.17261/Pressacademia.2026.2035.
JAMA
1.Huo J, Gu Y, Guo W, Xu W. DIGITAL FINANCIAL INCLUSION AND URBAN CARBON EMISSIONS: AN EMPIRICAL STUDY BASED ON NONLINEAR CHARACTERISTICS AND MECHANISM TESTING. JBEF. 2026;15:78–85.
MLA
Huo, Jinkun, et al. “DIGITAL FINANCIAL INCLUSION AND URBAN CARBON EMISSIONS: AN EMPIRICAL STUDY BASED ON NONLINEAR CHARACTERISTICS AND MECHANISM TESTING”. Journal of Business Economics and Finance, vol. 15, no. 1, June 2026, pp. 78-85, doi:10.17261/Pressacademia.2026.2035.
Vancouver
1.Jinkun Huo, Yongyi Gu, Wei Guo, Weilun Xu. DIGITAL FINANCIAL INCLUSION AND URBAN CARBON EMISSIONS: AN EMPIRICAL STUDY BASED ON NONLINEAR CHARACTERISTICS AND MECHANISM TESTING. JBEF. 2026 Jun. 1;15(1):78-85. doi:10.17261/Pressacademia.2026.2035

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