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The impact of Fintech on corporate carbon emissions: Towards green and sustainable development

Author

Listed:
  • Chang'an Wang
  • Long Wang
  • Shikuan Zhao
  • Cunyi Yang
  • Khaldoon Albitar

Abstract

Fintech, as the fusion of finance and technology, has not only transformed the traditional financial industry and contributed to reshaping the real economy. But also, it holds the potential to offer a feasible solution for achieving green and sustainable development. This paper investigates the impact of Fintech on corporate carbon emissions (CCEs) by using data from the National Tax Survey Database (NTSD). The results suggest that Fintech development leads to a reduction in CCEs. Our findings remain robust even after using the instrumental variable approach to alleviate endogeneity problems. The mechanism analysis reveals that Fintech reduces CCEs via alleviating financing constraints, improving energy efficiency, and promoting green innovation. Heterogeneity analysis demonstrates that Fintech dramatically decreases CCEs from coal energy consumption, while increasing CCEs from consuming power and gas energy. Additionally, carbon emissions from state‐owned and foreign companies experience a more pronounced reduction through Fintech compared to those from private firms. Furthermore, firms in eastern and middle regions are more vulnerable to Fintech development. Moreover, enterprises in non‐high‐tech industries and high‐polluting industries exhibit noteworthy performance in reducing carbon emissions through Fintech adoption. This research offers policymakers a path to effectively govern CCEs and achieve their carbon reduction targets.

Suggested Citation

  • Chang'an Wang & Long Wang & Shikuan Zhao & Cunyi Yang & Khaldoon Albitar, 2024. "The impact of Fintech on corporate carbon emissions: Towards green and sustainable development," Business Strategy and the Environment, Wiley Blackwell, vol. 33(6), pages 5776-5796, September.
    • Handle: RePEc:bla:bstrat:v:33:y:2024:i:6:p:5776-5796
    DOI: 10.1002/bse.3778
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    Cited by:

    1. Marc-Fabian Körner & Christina Leinauer & Tobias Ströher & Jens Strüker, 2025. "Digital Measuring, Reporting, and Verification (dMRV) for Decarbonization," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 67(5), pages 753-765, October.
    2. Lei, Xue & Kocoglu, Mustafa, 2025. "When good intentions meet bad outcomes: Evidence from China's cleaner production mandate," Energy Economics, Elsevier, vol. 152(C).
    3. Liu, Xiaoqian & Cifuentes-Faura, Javier & Wang, Chang'an & Wang, Long, 2025. "Can green finance policy reduce corporate carbon emissions? Evidence from a quasi-natural experiment in China," The British Accounting Review, Elsevier, vol. 57(5).
    4. Liu, Maotao & Fang, Xubing, 2025. "How does green investor entry affect corporate carbon performance? Evidence from China," Renewable Energy, Elsevier, vol. 244(C).
    5. Yalcin, Haydar & Demirhan, Dilek & Aracioglu, Burcu & Daim, Tugrul U. & Xing, Zeyu & Meissner, Dirk, 2026. "FinTech and the green transition: Exploring pathways to ignite innovation for carbon neutrality in global supply chains," Technology in Society, Elsevier, vol. 84(C).
    6. Ding, Qingfeng & Rao, Yulei & Dai, Yifei, 2025. "Can digital financial inclusion alleviate energy poverty? Evidence from China," Energy, Elsevier, vol. 333(C).
    7. Wan, Jiayu & Niu, Zihan & Li, Bin, 2025. "Does Fintech improve the carbon reduction effect of green credit policy? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 1258-1269.
    8. Siddik, Abu Bakkar & Mondal, Md. Saheb Ali & Uddin, Myne & Yong, Li, 2025. "Harnessing FinTech for green growth: financial innovations and energy efficiency in OECD nations," Research in International Business and Finance, Elsevier, vol. 79(C).
    9. Wang, Long & Ji, Wenjun & Zhang, Teng & Liu, Xiaoqian, 2025. "Does distance from government hinder enterprises’ OFDI？Evidence from China," Economic Systems, Elsevier, vol. 49(2).
    10. Yu, Anbang & Li, Hongchang, 2025. "Together or alone? Environmental regulations and energy consumption: Empirical evidence from 200 cities in China," Energy, Elsevier, vol. 341(C).
    11. Yu, Zemin & Shi, Enyi, 2025. "Green finance and corporate credit ratings - Exploring the potential of the sharing economy," Finance Research Letters, Elsevier, vol. 86(PG).
    12. Abbasi, Kaleemullah & Alam, Ashraful & Goodell, John W. & Du, Anna Min & Brohi, Noor Ahmed, 2025. "Vulnerability of energy firms to climate risk: Does fintech development help?," Energy Economics, Elsevier, vol. 146(C).
    13. Zhou, Wei & Chen, Yan & Zhang, Cesheng, 2025. "How does FinTech promote the low-carbon transformation of energy consumption in China?," Energy Economics, Elsevier, vol. 149(C).
    14. Anna Iwona Piotrowska & Dariusz Piotrowski, 2025. "Green FinTech: A Consumer Awareness Study," Sustainability, MDPI, vol. 17(8), pages 1-18, April.
    15. Mao, Fengfu & Yuan, Yue & Zhang, Fan, 2025. "Firm-level perception of uncertainty, risk aversion, and corporate real estate investment: Evidence from China's listed firms," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 1428-1441.

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