Digital inclusive finance and consumption-based embodied carbon emissions: A dual perspective of consumption and industry upgrading

Promoting the development of financial instruments can influence carbon emission reduction in the context of the carbon peaking and carbon neutrality goals. There are currently no theoretical mechanisms to explain whether and how digital inclusive finance, as a new type of financial service, influences residential consumption-based embodied carbon emissions. This study employs the mediation model, moderation model, and moderated mediation model to empirically evaluate the influence mechanism of digital inclusive finance on consumption-based embodied carbon emissions per capita in China from 2011 to 2019. The findings demonstrate that the development of digital inclusive finance increases residents' consumption-based embodied carbon emissions by upgrading consumption level and consumption structure, but that upgrading industrial structure does indeed have a significantly negative moderating effect in implications paths, causing consumption-based embodied carbon emissions to shift from positive to negative. This study, by focusing on the advancement of digital inclusive finance, offers policymakers suggestions for reducing consumption-based embodied carbon emissions from the standpoints of consumption upgrading and industrial structure upgrading, respectively.