Influence of Financial Technology on City Carbon Emission — Based on Urbanization Mediation

Abstract

In the context of rapidly advancing digital technology, it is crucial to examine how the digital economy influences urban performance, particularly considering its intermediary role in the urbanization process. This paper specifically explores the impact of financial technology on urban CO₂ emissions using both a double fixed-mode approach and an intermediate effect model. The findings highlight two key points: first, the development of financial technology significantly affects a city's CO₂ emissions, and second, the degree of influence varies depending on the extent of financial technology adoption. This heterogeneity suggests that different cities experience different impacts based on their level of digital financial integration. Consequently, it is imperative to recognize and harness the role of digital finance in fostering a green and low-carbon economy. By leveraging digital finance, cities can implement more effective strategies for reducing carbon emissions and advancing towards becoming low-carbon cities. This underscores the importance of integrating digital financial tools and technologies in urban planning and environmental policies to promote sustainable urban development.