Spatial Effects of Digital Transformation, PM 2.5 Exposure, Economic Growth and Technological Innovation Nexus: PM 2.5 Concentrations in China during 2010-2020.

Digital transformation can increase lending by commercial banks, which may have an impact on economic development and technological progress, thus affecting air pollution. However, a limited amount of literature has discussed the impact of the digital transformation of commercial banks (DTCB) on air pollution. Based on city-level data from 2010 to 2020, this study used a spatial Durbin model to explore the spatial effects of DTCB on air pollution. This study shows that DTCB significantly increases air pollution in local and surrounding cities. Heterogeneity analysis shows that DTCB increases local and surrounding city air pollution in non-innovative cities and cities with low digital economy development. However, in innovative cities and cities with high digital economy development, DTCB reduces PM2.5 emissions in local and surrounding cities. Mechanism analysis shows that DTCB has no significant impact on technological innovation, but significantly promotes economic development, thus increasing air pollution. From the perspective of DTCB, this paper deepens the research on digital finance and air pollution. Against the background of DTCB, the government should guide commercial banks to apply digital technology to increase lending for technology innovation and promote DTCB to achieve the dual goals of economic development and improvement in air quality.