Effect of digital finance on inclusive green growth: Evidence from China's urban agglomerations

This study uses a data envelopment analysis model to assess the inclusive green growth (IGG) level for five major urban agglomerations in China from 2013 to 2020. In addition, it analyzes the potential digital finance (DIF) mechanism affecting IGG. Several conclusions are obtained. First, the IGG levels of the five major urban agglomerations in China increase yearly, narrowing their gaps. Second, DIF can significantly promote IGG. Third, heterogeneity exists in the impact of DIF on IGG owing to the differences in city tiers and sizes. Meanwhile, the coverage and digitization level of DIF significantly and positively promote IGG. Fourth, financial supervision intensity and human capital level play a single-threshold effect in the relationship between DIF and IGG. The contribution of DIF to IGG is further enhanced when financial regulation intensity and human capital level exceed the thresholds 0.0013 and 1.5084, respectively. Lastly, green technology innovation, regional entrepreneurship, and industrial structure upgrading have intermediary roles in the baseline path of DIF impacting IGG.