IDEAS home Printed from https://ideas.repec.org/a/eee/ecanpo/v85y2025icp1258-1269.html
   My bibliography  Save this article

Does Fintech improve the carbon reduction effect of green credit policy? Evidence from China

Author

Listed:
  • Wan, Jiayu
  • Niu, Zihan
  • Li, Bin

Abstract

Technological advancements have driven financial innovation, improving market efficiency and demonstrating potential to enhance the effectiveness of green credit policies. Although extensive research has explored the impacts of green finance policies, few studies have investigated the role of Fintech in shaping these effects. This study employs panel data from Chinese-listed companies between 2007 and 2021 to analyze how Fintech reinforces the carbon reduction impact of green credit policies. Our findings reveal that Fintech significantly amplifies these outcomes by improving information quality in the pre-loan phase, easing funding constraints during the lending phase, and ensuring targeted environmental use of funds in the post-loan phase. Additionally, we identify conditions that optimize Fintech's effectiveness, such as firms’ political connections, the economic development levels of their regions, and the degree of marketization. These results underscore Fintech's potential in facilitating inclusive low-carbon transitions and provide valuable insights for enhancing green finance strategies.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:ecanpo:v:85:y:2025:i:c:p:1258-1269
    DOI: 10.1016/j.eap.2025.01.016
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0313592625000165
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eap.2025.01.016?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecanpo:v:85:y:2025:i:c:p:1258-1269. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/economic-analysis-and-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.