The impact of digital inclusive finance on provincial green development efficiency: empirical evidence from China

Green development is inseparable from financial support. The impact of digital inclusive finance (DIF), an emerging financial format, on the green development efficiency (GDE) needs to be studied. Using the panel data of the Provincial Digital Financial Inclusion Index from 2011 to 2019, this paper examines the impact of DIF and its coverage breadth (CB), usage depth (UD), and digitalization level (DL) on GDE, and analyzes the regional heterogeneity of the impact of DIF on GDE. The research also explores the mechanism by which DIF affects the efficiency of provincial green development, including the moderating role of environmental regulation (ER) and the mediating role of industrial structure upgrade (ISU). The results show that DIF, UD, and DL can significantly improve provincial GDE, and the effect of coverage breadth is not obvious. From a regional perspective, DIF can promote GDE in the eastern and central regions, whereas it has no obvious effect on the western region. Moreover, ER has played a moderation role in the process of DIF affecting GDE. ISU has played a partial mediation role in the process of DIF affecting GDE. The research conclusions can provide relevant suggestions for the green development of China's provinces.