Digital finance and the two-dimensional logic of industrial green transformation: Evidence from green transformation of efficiency and structure

This paper deconstructs industrial green transformation into two aspects, industrial efficiency green transformation and industrial structure green transformation. We examine the impact of digital finance development on industrial green transformation using data from Chinese cities and listed companies. The results showed that: (1) digital finance can contribute to the green transformation of industrial structure distinctly but has an inhibiting effect on the green transformation of industrial efficiency. (2) Digital finance can promote capital-using technological progress and support industrial green transformation with its price effect and scale effect. (3) Higher government environmental preferences and governance capacity can strengthen the green transformation effect of digital finance. Strengthening financial supervision and narrowing the digital divide will help digital finance better support industrial green transformation. Digital finance development can more effectively promote the industrial green transformation of non-SOEs and enterprises with high financing constraints and high financial dependence. (4) Considering the financial attributes and highly polluting characteristics of real estate, digital finance exacerbates the pollution of the real estate industry. This study helps clarify the mechanism of digital finance supporting green development and provides some ideas for China's digital finance development and green economy transformation.