Can Digital Inclusive Finance Promote Urban Ecological Efficiency?—Impact Mechanism and Spatial Effects

The paper utilizes panel data from 278 cities in China spanning the years 2010 to 2020 to comprehensively assess the impact of digital inclusive finance on urban ecological efficiency. The study shows that digital inclusive finance significantly contributes to the enhancement of urban ecological efficiency, primarily attributed to the deepening of digital inclusive finance's usage depth and degree of digitization. Mechanism analysis further indicates that digital inclusive finance can expedite the concentration of human capital, foster technological innovation, and boost foreign direct investment, ultimately promoting the advancement of urban ecological efficiency. Moreover, the spatial spillover effect analysis demonstrates that digital inclusive finance not only enhances the ecological efficiency within a region but also notably elevates the ecological efficiency levels of neighboring cities. Additionally, our findings indicate that the development of digital inclusive finance has a more pronounced positive effect on improving ecological efficiency in the central and western regions, larger cities, and cities with higher levels of digital inclusive finance compared to the eastern region, small and medium-sized cities, and cities with lower digital inclusive finance development.