How Does Green Digital Finance Affect Inclusive Green Growth? Evidence from China

Under dual pressure of tightening environmental constraints and rising demands for social equity, promoting inclusive green growth (IGG) is key to high-quality development. Based on the panel data from 282 prefecture-level and above Chinese cities, this study applies the double machine learning approach to evaluate the impact of green digital finance (GDF) on urban IGG and its potential mechanisms. Per the highlights, GDF empowers urban IGG and this effect is heterogeneous and uneven. Mechanism analyses identify multiple channels, including information, resource allocation, and ecological-environmental effects. This provides valuable experience for economies at different stages of development around the world to promote inclusive green development through green digital finance.