Abstract
ABSTRACT Access to financial services plays a crucial role in shaping household consumption patterns and carbon emissions. The advancement of inclusive finance in China, known for stimulating consumption, prompted an examination of its impact on household carbon emissions. Our study reveals that inclusive finance substantially lowers Chinese household carbon emissions by enhancing green awareness and reducing income inequality. Notably, the effects of inclusive finance are more significant in rural regions and among households with younger heads. Therefore, fostering inclusive finance is essential for harmonizing financial equity with environmental sustainability.
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