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How does FinTech promote the low-carbon transformation of energy consumption in China?

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  • Zhou, Wei
  • Chen, Yan
  • Zhang, Cesheng

Abstract

FinTech significantly influences consumer behaviors and the demand and supply of energy consumption, making it meaningful to explore its relationship with the low-carbon transformation (LCT) of energy consumption in China, which are two emerging and interconnected issues. In this study, we conduct a multidimensional analysis of how FinTech promotes the LCT of energy consumption in China, encompassing empirical studies, pathway identification, and mechanism analysis. The results show that: (1) FinTech can significantly promote the LCT of energy consumption in China. (2) Mechanism analysis reveals that FinTech facilitates this transition through three pathways, namely household income growth, corporate innovation promotion, and industrial upgrading propulsion. (3) Heterogeneity tests indicate that the impact of FinTech on LCT is more pronounced in northern provinces and central-western regions. (4) From the supply perspective, FinTech significantly promotes LCT following the implementation of the new Environmental Protection Law. (5) From the demand perspective, FinTech also advances this transformation even before the enactment of the law. Based on these findings, we offer policy recommendations to further promote the LCT of energy consumption in China and support the continued development of FinTech.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:eneeco:v:149:y:2025:i:c:s0140988325005316
    DOI: 10.1016/j.eneco.2025.108704
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    3. Umar, Muhammad & Horobet, Alexandra & Negreanu, Cristina Carmencita & Belascu, Lucian & Mirza, Nawazish, 2025. "Fintech adoption, AI development, and energy transition dynamics," Energy Economics, Elsevier, vol. 151(C).

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