Elevated systemic vascular stiffness is associated with increased risk of cardiovascular disease. It has been suggested that the time difference between the two characteristic peaks of the digital volume pulse (DVP) measured at the finger using photoplethysmography is related to the stiffness of the arterial tree, and inversely proportional to the stiffness index (SI). However, the precise physical meaning of the SI and its relation to aortic pulse wave velocity (aPWV) is yet to be ascertained. In this study we investigated numerically the effect of changes in arterial wall stiffness, peripheral resistances, peripheral compliances or peripheral wave reflections on the SI and aPWV. The SI was calculated from the digital area waveform simulated using a nonlinear one-dimensional model of pulse wave propagation in a 75-artery network, which includes the larger arteries of the hand. Our results show that aPWV is affected by changes in aortic stiffness, but the SI is primarily affected by changes in the stiffness of all conduit vessels. Thus, the SI is not a direct substitute for aPWV. Moreover, our results suggest that peripheral reflections in the upper body delay the time of arrival of the first peak in the DVP. The second peak is predominantly caused by the impedance mismatch within the 75 arterial segments, rather than by peripheral reflections.