Spatial Effects of Digital Transformation, PM2.5 Exposure, Economic Growth and Technological Innovation Nexus: PM2.5 Concentrations in China during 2010-2020

Fenfen Ma; Shah Fahad; Mancang Wang; Abdelmohsen A Nassani; Mohamed Haffar

doi:10.3390/ijerph20032550

Spatial Effects of Digital Transformation, PM_2.5 Exposure, Economic Growth and Technological Innovation Nexus: PM_2.5 Concentrations in China during 2010-2020

Int J Environ Res Public Health. 2023 Jan 31;20(3):2550. doi: 10.3390/ijerph20032550.

Authors

Fenfen Ma¹, Shah Fahad^{2

3}, Mancang Wang⁴, Abdelmohsen A Nassani⁵, Mohamed Haffar⁶

Affiliations

¹ School of Management, Yulin University, Yulin 719000, China.
² School of Management, Hainan University, Haikou 570228, China.
³ School of Economics and Management, Leshan Normal University, Leshan 614000, China.
⁴ School of Economics and Management, Northwest University, Xi'an 710127, China.
⁵ Department of Management, College of Business Administration, King Saud University, P.O. Box 71115, Riyadh 11587, Saudi Arabia.
⁶ Department of Management, Birmingham Business School, University of Birmingham, Birmingham B15 2TY, UK.

Abstract

Digital transformation can increase lending by commercial banks, which may have an impact on economic development and technological progress, thus affecting air pollution. However, a limited amount of literature has discussed the impact of the digital transformation of commercial banks (DTCB) on air pollution. Based on city-level data from 2010 to 2020, this study used a spatial Durbin model to explore the spatial effects of DTCB on air pollution. This study shows that DTCB significantly increases air pollution in local and surrounding cities. Heterogeneity analysis shows that DTCB increases local and surrounding city air pollution in non-innovative cities and cities with low digital economy development. However, in innovative cities and cities with high digital economy development, DTCB reduces PM2.5 emissions in local and surrounding cities. Mechanism analysis shows that DTCB has no significant impact on technological innovation, but significantly promotes economic development, thus increasing air pollution. From the perspective of DTCB, this paper deepens the research on digital finance and air pollution. Against the background of DTCB, the government should guide commercial banks to apply digital technology to increase lending for technology innovation and promote DTCB to achieve the dual goals of economic development and improvement in air quality.

Keywords: PM2.5 exposure; air pollution; digital transformation; economic development; spatial spillover effects.

Publication types

Research Support, Non-U.S. Gov't

MeSH terms

Air Pollutants* / analysis
Air Pollution* / analysis
China
Cities
Economic Development
Inventions
Particulate Matter / analysis

Substances

Air Pollutants
Particulate Matter

Grants and funding

This study is supported by Researchers Supporting Project number (RSP2023R87), King Saud University, Riyadh, Saudi Arabia and National Natural Science Foundation of China (NSFC) “Research Fund for International Young Scientists” Grant No. 72250410374.