The Digital Yuan Pilot and Its Role in Promoting Green Finance Development: A Quasi-Natural Experiment Using Panel Data from Prefecture-Level Cities
DOI:
https://doi.org/10.54097/xw9wj780Keywords:
Digital Yuan, Green Finance, Prefecture-level City Panel Data, PSM-DID, Green Total Factor Productivity (GTFP)Abstract
This study, based on panel data from 293 prefecture-level cities in China between 2020 and 2021, uses propensity score matching with difference-in-differences (PSM-DID) to systematically examine the impact of the digital yuan pilot program on the development of green finance. The results show that the digital yuan pilot significantly promotes the development of green finance, evidenced by a notable increase in the green total factor productivity (GTFP) in the pilot regions. Further heterogeneity analysis reveals that the pilot’s effect is more pronounced in non-resource-based cities, cities with lower fiscal pressure, and cities with relatively underdeveloped internet infrastructure. Moreover, mechanism analysis suggests that the digital yuan pilot indirectly fosters the development of green finance by enhancing market liquidity and boosting consumption levels. This study not only fills the gap in the research on the relationship between the digital yuan and green finance but also provides valuable insights for policymakers.
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