An Informatics-Based Analysis of the Nonlinear Impact of Green Finance on Digital Economy Development: Evidence from Chinese Provinces

Abstract

This study explores the nonlinear relationship between green finance and digital economy development in China from an informatics and service-science perspective. Using panel data from 30 provinces between 2000 and 2023, the research constructs composite indices of green finance and digital economy through the entropy weight method and employs threshold regression and spatial Durbin models to analyze their interactions. The results reveal a significant inverted U-shaped nonlinear effect of green finance on the digital economy, suggesting that while green finance initially enhances digital economic growth through optimized resource allocation and green innovation, its marginal benefits diminish as expansion intensifies. Moreover, the study identifies a negative spatial spillover effect, indicating competitive crowding-out of digital resources among neighboring provinces. These findings highlight the stage-dependent and spatially heterogeneous characteristics of green finance’s influence on the digital economy. By framing green finance as an informatics-based financial service system, the study provides empirical evidence and decision-support implications for enhancing regional coordination, improving digital governance mechanisms, and promoting the sustainable and intelligent growth of China’s digital economy.