Financial accessibility and eco-environmental quality: evidence from the geographic distribution of financial institution branches in China

We investigate the impact of financial accessibility on eco-environmental quality from the perspective of the geographic distribution of financial institution branches in China. Based on panel data from 2,803 counties from 2010 to 2023, the findings reveal that financial accessibility significantly improves eco-environmental quality. Industrial structure adjustment, green technological innovation, and restricting the production scale of heavily polluting firms are the potential channels for this improvement. This effect is more pronounced in district-level areas and regions with low river density. Furthermore, digital finance significantly amplifies the beneficial impact of physical financial accessibility on eco-environmental quality. We highlight the crucial role of financial accessibility in driving sustainable environmental governance.