Does Mobile Payment Foster Low-Carbon Lifestyles? Evidence from Alipay's “Collecting Five Blessings” Campaign

The widespread use of digital technology has driven a huge change in the way payments are made. Based on the micro-data of the China Family Panel Studies (CFPS), this paper explores the relationship between mobile payment and carbon emissions from the consumption side. With the exogenous impact of Alipay's "Collecting Five Blessings" campaign, this paper finds that mobile payments significantly increase household consumption carbon emissions. The research indicates that as household consumption carbon emissions increase, the influence of mobile payments gradually diminishes. Further analysis revealed that the expansion of consumption scale and consumption structure upgrades are the main reasons for the increase in carbon emissions due to mobile payments. There are differences in carbon emission growth among different household groups, especially in areas with high penetration of mobile payments, rural areas, and households with a higher proportion of hedonic consumption, where carbon emission growth is more significant. Conversely, highly educated and younger households are more likely to adapt to low-carbon lifestyles, thus the impact of mobile payments on their carbon emission growth is not significant. However, it is regrettable that current government policies aimed at reducing carbon emissions have not effectively mitigated the increase in household carbon emissions caused by mobile payments.