Green finance, green development and decarbonization of the energy consumption structure.

Energy plays a crucial role in global economic development, but it also contributes significantly to CO2 emissions. China has proposed a "dual-carbon" goal, and a key aspect to achieving this objective is finding effective ways to promote the decarbonization of the energy consumption structure (DECS). Compared with traditional finance, green finance is pivotal in advancing green and low-carbon development. However, the mechanism through which green finance impacts DECS has not been thoroughly explored. This study employs an enhanced weighted multi-dimensional vector angle method, which is more systematic and scientific, to measure DECS. Then, dynamic panel data from 30 provinces in China spanning the years 2003 to 2020 are used. A double fixed-effects model is applied to investigate the impact of green finance on the DECS and identify potential pathways. Results reveal that green finance significantly enhances DECS, primarily by reinforcing green development. The critical impact pathway involves the promotion of green technology innovation and green industry development. Moreover, the enhancing effect of green finance on the DECS is considerably significant in regions with relatively low government spending on science and technology (S&T), and where the focus is not on the "Atmospheric Ten" policy. The measurement of DECS is innovative, and the conclusions derived from it can offer compelling evidence for various social stakeholders. The government has the opportunity to establish a green financial system, supporting green technological innovation and the development of green industries. This approach can accelerate the DECS and work toward achieving the "double carbon" goal at an earlier date.

Unraveling the impact of digital transformation on green innovation through microdata and machine learning.

How to use digitalization to support the green transformation of organizations has drawn much attention based on the rapid development of digitalization. However, digital transformation (DT) may be hindered by the "IT productivity paradox." Exploring the influence of DT on green innovation, we analyze panel data encompassing A-share listed companies in Shanghai and Shenzhen spanning the period from 2010 to 2018. It tests the DT's non-linear impact, employing a random-forest and mediation effect models. The results reveal that (i) DT can promote green innovation; (ii) regarding heterogeneity, the promotion effect is mainly manifested in enterprises in non-state-owned and highly competitive industries; (iii) based on mechanism testing, DT relies on two routes to encourage green innovation: improving environmental information disclosure and reducing environmental uncertainty; and (iv) random-forest analysis shows that DT exhibits an inverted U-shaped non-linear effect on green innovation, including the "IT productivity paradox." This study enhances the existing discourse on DT and green innovation by furnishing empirical substantiation for the non-linear influence exerted by DT on green innovation. Furthermore, it imparts insights into the mechanisms and contextual limitations governing this association.

Local Fiscal Pressure and Public Health: Evidence from China.

Under the dual challenges of global downward economic pressure and the COVID-19 pandemic, studying the impact of local government fiscal pressure on public health is a meaningful endeavor. First, this paper analyzes the impact of local government fiscal pressure on public health and clarifies its impact mechanisms. Second, by utilizing panel data of 31 Chinese provinces from 2000 to 2020, two-way fixed-effects and mediating-effects models are developed to identify the effects and impact mechanisms of local government fiscal pressure on public health. The results show that local government fiscal pressure can be detrimental to public health through three main mechanisms: reducing public health fiscal expenditures, hindering industrial structure upgrading, and exacerbating environmental pollution. Heterogeneity analysis finds that the negative effects of local government fiscal pressure on public health mainly exist in Central and Western China. Accordingly, three policy implications are proposed: optimizing the fiscal system, accelerating industrial upgrading, and improving the appraisal system of local officers.

How do vertical fiscal imbalances affect energy efficiency? The role of government spending on science and technology.

How to improve energy efficiency is a practical issue of common concern around the world. In China, vertical fiscal imbalances (VFIs) generated under the existing fiscal system may have a significant impact on energy efficiency through government spending on science and technology (S&T). However, this potential relationship has not been explored in the literature. In this work, we aim to address this gap. Using Chinese provincial panel data from 2001 to 2017, this study empirically examines the relationship between VFIs and energy efficiency through a mediation model. The results show that VFIs greatly suppress energy efficiency. We further find that VFIs indirectly affect energy efficiency by reducing government spending on S&T. The results show significant regional heterogeneity. The intermediary role of government S&T expenditure is more significant in inland areas than in coastal areas. Therefore, to improve energy efficiency and achieve sustainable development, the Chinese government should focus on innovative reform of the existing fiscal system and reduce VFIs. In addition, the government should focus on fiscal spending in the field of S&T to promote technological innovation to guarantee the improvement of energy efficiency. Inland areas should pay particular attention to this issue.