Author(s)

Zhong Zhang ¹

Affiliation(s)

¹ Woosong University, Daejeon, South Korea

Corresponding Author

Zhong Zhang

ABSTRACT

China has a huge demographic advantage and a relatively well-designed infrastructure, which is why digital finance is developing relatively well in China. A statistical analysis of the data relating to the development of digital finance provides insight into the regional differences in current development and the main factors contributing to such differences. At the same time, it also has important guiding significance for China to promote the development of small, medium and micro enterprises, narrow the gap between the rich and the poor, eliminate poverty and promote the better development of inclusive finance. Therefore, the aim of this paper was to investigate the environmental effects and sustainable development strategies of digital finance development in China based on Gaussian Mixture Model (GMM). This paper proposed an improved GMM algorithm for accurate assessment and calculation of the current development of China's digital economy. In the analysis of environmental effects, this paper selected SO₂ and wastewater as explained variables; in the evaluation of the sustainability of the financial environment, this paper selected the scale of digital finance as the explained variable, and selected overseas investment and per capita GDP as the explanatory variables. The system GMM fitting results in this paper showed that the correlation coefficients for SO₂ and wastewater were -0.256 and -0.235, respectively. This showed that the development of digital finance in China could significantly reduce the discharge of SO₂ and wastewater, and had a good effect on improving the environment.

KEYWORDS

China's Digital Finance, Environmental Effects, Sustainability Evaluation, Digital Finance Development

CITE THIS PAPER

Zhong Zhang, Environmental Effects and Sustainability Evaluation of China's Digital Finance Development. Financial Engineering and Risk Management (2024) Vol. 7: 60-69. DOI: http://dx.doi.org/10.23977/ferm.2024.070408.

REFERENCES

[1] Chen S, Zhang H. Does digital finance promote manufacturing servitization: Micro evidence from China[J]. International Review of Economics & Finance, 2021, 76(7): 13-18.
[2] Reshetnikova N, Magomedov M, Buklanov D. Digital Finance Technologies: Threats and Challenges to the Global and National Financial Security [J]. IOP Conference Series Earth and Environmental Science, 2021, 666(6): 62139-62152.
[3] Fan L, Xuemei Li, Guo Q, Zhang C. Nonlocal image denoising using edge-based similarity metric and adaptive parameter selection[J]. Science China Information Sciences, 2018, 61(04): 1-3.
[4] Zhang M, Lv Z. The Influencing Factors of Financial Support Efficiency of New Generation High-Tech Industry in China: Evidence from Listed Companies[J]. Theoretical Economics Letters, 2021, 11(4): 18-25.
[5] Liu S, Huo Z. Analysis of the Application of Digital Agricultural Technology in the Development of Farm Economy [J]. Modern Economics & Management Forum, 2021, 2(6): 56-68.
[6] Yu S, Liu J, Yin Y, Shen M. Interactions between engineered nanoparticles and dissolved organic matter: A review on mechanisms and environmental effects[J]. Journal of Environmental Sciences, 2018, 63(001): 198-217.
[7] Huang C, Tang Z, Xi B, Tan W, Guo W, Wu W, et al. Environmental effects and risk control of antibiotic resistance genes in the organic solid waste aerobic composting system: A review[J]. Frontiers in Environmental Science and Engineering, 2021, 15(6): 12-13.
[8] Kristina K, Prokopchuk I P, Stige L C. Environmental effects on Calanus finmarchicus abundance and depth distribution in the Barents Sea [J]. ICES Journal of Marine Science, 2021, 2021(3): 3-5.
[9] Janicke T, Chapuis E, Meconcelli S, Bonel N, Delahaie B, David P. Environmental effects on the genetic architecture of fitness components in a simultaneous hermaphrodite[J]. Journal of Animal Ecology, 2022, 91(1): 13-15.
[10] Wang J, Zhang Z, Li Z. Performance Evaluation of Desulfurized Rubber Asphalt Based on Rheological and Environmental Effects[J]. Journal of Materials in Civil Engineering, 2020, 32(1): 04019330-04019339.
[11] Zetzsche D A, Filippo A, Arner D W, Buckley R P. The Markets in Crypto-Assets regulation (MiCA) and the EU digital finance strategy[J]. Capital Markets Law Journal, 2021, 2021 (2): 2-5.
[12] Bal A. Handbook of Blockchain, Digital Finance, and Inclusion. EU VAT Implications of Crowdfunding. 2018, 18(5): 419-429.
[13] Zhang X, Wang G H, Zhang J J, He Z Y. Digital Economy, Financial Inclusion and Inclusive Growth[J]. The Chinese Economist, 2020, 15(3): 14-19.
[14] Upadhyay A, Reddy K S. Digital financial inclusion - demand side vs. supply side approach[J]. International Journal of Electronic Finance, 2021, 10(3): 191-203.
[15] White L R, Simon T D, Jackiw J. Digital Manufacturing And The CFO[J]. Strategic Finance, 2019, 100(11): 26-33.
[16] Banna H, Alam M R. Impact of digital financial inclusion on ASEAN banking stability: Implications for the post-Covid-19 era[J]. Studies in Economics and Finance, 2021, 38(2): 504-523.
[17] Wang K L, Zhu R R, Cheng Y H. Does the Development of Digital Finance Contribute to Haze Pollution Control? Evidence from China[J]. Energies, 2022, 15(7): 2660-2668.
[18] Cao S, Nie L, Sun H, Sun W, Taghizadeh-Hesary F. Digital finance, green technological innovation and energy-environmental performance: Evidence from China's regional economies[J]. Journal of Cleaner Production, 2021, 327(23): 129458-129462.
[19] Li J, Wu Y, Xiao J J. The impact of digital finance on household consumption: Evidence from China[J]. Economic Modelling, 2020, 86(3): 317-326.
[20] Chen Shi. Chapter 8–Econometric Analysis of a Cryptocurrency Index for Portfolio Investment[J]. Handbook of Blockchain Digital Finance & Inclusion, 2018, 20(1): 175-206. 
[21] Li X, Zhang J, Long H, Chen Y, & Zhang A. Optimization of Digital Information Management of Financial Services Based on Artificial Intelligence in the Digital Financial Environment. Journal of Organizational and End User Computing, 2023, 35(3): 1-17. 

Sponsors, Associates, and Links

---

• Information Systems and Economics
  
  
• Accounting, Auditing and Finance
  
  
• Industrial Engineering and Innovation Management
  
  
• Tourism Management and Technology Economy
  
  
• Journal of Computational and Financial Econometrics
  
  
• Accounting and Corporate Management
  
  
• Social Security and Administration Management
  
  
• Population, Resources & Environmental Economics
  
  
• Statistics & Quantitative Economics
  
  
• Agricultural & Forestry Economics and Management
  
  
• Social Medicine and Health Management
  
  
• Land Resource Management
  
  
• Information, Library and Archival Science
  
  
• Journal of Human Resource Development
  
  
• Manufacturing and Service Operations Management
  
  
• Operational Research and Cybernetics