How Does Digital Finance Affect Energy Efficiency?—Characteristics, Mechanisms, and Spatial Effects

Abstract

The boundaries of traditional financial services have been expanded by digital finance, which has boosted their effectiveness and quality while encouraging energy-efficient production and lifestyles, and also influencing energy efficiency. This connection between energy efficiency and digital finance is empirically investigated in this paper using panel data from 278 cities from 2011 to 2019. The main findings indicate that energy efficiency can be greatly increased via digital finance. Moreover, usage depth and digitalization level can improve energy efficiency while coverage inhibits it; developed digital finance regions, central regions, and resource-based cities have all seen improvements in energy efficiency. Furthermore, green technology innovation and R&D investment are mechanisms for digital finance that can improve energy efficiency. Finally, further research illustrates that digital finance can improve local energy efficiency while inhibiting neighboring areas’ efficiency, though this effect is insignificant. This research provides additional impetus for a rise in energy efficiency due to the growth of digital finance.