Impact of Digital Inclusive Finance and Environmental Regulation on Eco-Efficiency of Farmland Utilization in China

The farmland pollution has threatened the lifeblood of people's livelihoods through the soil-to-crop system, and the resulting food safety risks are becoming more and more pronounced. Digital inclusive finance (DIF) can provide convenient financial services for the eco-transformation of farmland utilization. This study analyzed the spatial evolution pattern of eco-efficiency of farmland utilization (EEFU) and DIF, empirically tested the impact of DIF on EEFU, and discussed the impact of DIF on EEFU with changes in the level of environmental regulatory intensity based on panel data from 2011 to 2022 in China. The results found that the development of EEFU and DIF is increasing, and the polarization phenomenon is constantly easing, but the absolute differences between different provinces in China have an expanding trend. DIF can improve the EEFU, and this promotion effect is more pronounced in eastern and central China, non-grain-producing areas, and areas with low levels of financial development. DIF will not be able to improve EEFU until environmental regulation has reached a certain level. China should fully leverage the positive role of DIF and environmental regulations in promoting the EEFU, provide more differentiated financial products, financial tools, and financial models for the eco-transformation of farmland utilization, and explore a path for eco-transformation of farmland utilization that complements environmental regulations and development of market-inclusive finance.