How does digital finance accelerate low-carbon development: evidence from the Yellow River Basin, China

Digital finance has become one of the most important factors that drives the transformation toward a low-carbon economy. Although some researchers have examined the association between digital finance and low-carbon development, the indirect effect and asymmetric effect of digital finance on low-carbon development still needs to receive more attention. Taking 71 cities in the Yellow River Basin as an empirical area, this study analyzed how digital finance accelerates low-carbon development, proving that digital finance can directly boost low-carbon development. Moreover, technological innovation and industrial upgrading driven by digital finance can also reduce carbon emission intensity and accelerate low-carbon development. Furthermore, the results of the asymmetric test indicate that cities with higher carbon emission intensity have a more substantial positive influence. The recommendations presented in this study are beneficial for accelerating the progress of low-carbon development in the Yellow River Basin.