IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v77y2025ics1544612325003733.html
   My bibliography  Save this article

Financial technology and regional carbon emission reduction: Mediating effect of green technology innovation

Author

Listed:
  • Jiang, Yuan
  • Wang, Xiaomei
  • Wang, Wenting

Abstract

Utilizing data spanning 2012–2022, this study investigated the impact of financial technology on regional carbon emissions, the role of its internal and external mechanisms, and the role of fintech in reducing carbon emission. The conclusions show that the higher the fintech index and the number of regional fintech companies, the lower the carbon emission. Green technological innovation plays a significant mediating role. Fintech achieves sustainable development through innovative financial tools and services and helps firms formulate personalized emission reduction strategies to respond to risks in better ways.

Suggested Citation

  • Jiang, Yuan & Wang, Xiaomei & Wang, Wenting, 2025. "Financial technology and regional carbon emission reduction: Mediating effect of green technology innovation," Finance Research Letters, Elsevier, vol. 77(C).
    • Handle: RePEc:eee:finlet:v:77:y:2025:i:c:s1544612325003733
    DOI: 10.1016/j.frl.2025.107110
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612325003733
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2025.107110?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

    for a different version of it.

    References listed on IDEAS

    as
    1. Hu, Qianlin & Mijit, Razia & Xu, Jingxuan & Miao, Shan, 2024. "Can government-led urban expansion simultaneously alleviate pollution and carbon emissions? Staggered difference-in-differences evidence from Chinese firms," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 1-25.
    2. Ang, B.W. & Su, Bin, 2016. "Carbon emission intensity in electricity production: A global analysis," Energy Policy, Elsevier, vol. 94(C), pages 56-63.
    3. Benkraiem, Ramzi & Garfatta, Riadh & Lakhal, Faten & Zorgati, Imen, 2022. "Financial contagion intensity during the COVID-19 outbreak: A copula approach," International Review of Financial Analysis, Elsevier, vol. 81(C).
    4. Yan Wu & Chunlai Chen & Cong Hu, 2021. "Does the Belt and Road Initiative Increase the Carbon Emission Intensity of Participating Countries?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 29(3), pages 1-25, May.
    5. Ramzi Benkraiem & Riadh Garfatta & Faten Lakhal & Imen Zorgati, 2022. "Financial contagion intensity during the COVID-19 outbreak: A copula approach," Post-Print hal-03638322, HAL.
    6. Huang, Lizhen & Krigsvoll, Guri & Johansen, Fred & Liu, Yongping & Zhang, Xiaoling, 2018. "Carbon emission of global construction sector," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 1906-1916.
    7. Zhi Yu & Yali Cao & Mo Liu, 2022. "Does carbon emission trading policy affect bank loans of firms? Evidence from China," Applied Economics Letters, Taylor & Francis Journals, vol. 29(18), pages 1709-1714, October.
    8. Nagayasu, Jun, 2019. "Financial flows, global interest rates, and political integration," Finance Research Letters, Elsevier, vol. 31(C).
    9. Hou, Xiang & Hu, Qianlin & Liang, Xin & Xu, Jingxuan, 2023. "How do low-carbon city pilots affect carbon emissions? Staggered difference in difference evidence from Chinese firms," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 664-686.
    10. Zhou, P. & Ang, B.W. & Han, J.Y., 2010. "Total factor carbon emission performance: A Malmquist index analysis," Energy Economics, Elsevier, vol. 32(1), pages 194-201, January.
    11. Daniel Hoechle, 2007. "Robust standard errors for panel regressions with cross-sectional dependence," Stata Journal, StataCorp LLC, vol. 7(3), pages 281-312, September.
    12. Xu, Hao & Xu, Jingxuan & Wang, Jie & Hou, Xiang, 2023. "Reduce production or increase efficiency? Hazardous air pollutants regulation, energy use, and the synergistic effect on industrial enterprises' carbon emission," Energy Economics, Elsevier, vol. 126(C).
    13. Lv, Chengchao & Shao, Changhua & Lee, Chien-Chiang, 2021. "Green technology innovation and financial development: Do environmental regulation and innovation output matter?," Energy Economics, Elsevier, vol. 98(C).
    14. Akhtaruzzaman, Md & Boubaker, Sabri & Sensoy, Ahmet, 2021. "Financial contagion during COVID–19 crisis," Finance Research Letters, Elsevier, vol. 38(C).
    15. Risman, Asep & Ali, Anees Janee & Soelton, Mochamad & Siswanti, Indra, 2022. "The behavioral finance of MSMEs in the advancement of financial inclusion and financial technology (fintech)," MPRA Paper 118212, University Library of Munich, Germany, revised 10 Feb 2023.
    16. Hongxia Sun & Jinzhou Liu & Linlin Zhang, 2025. "Differential Game Analysis of Carbon Emission Reduction Effect and Price Strategy Considering Government Intervention and Manufacturer Competition," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(2), pages 1146-1166, March.
    17. Bai, Dongbei & Hu, Jin & Irfan, Muhammad & Hu, Mingjun, 2023. "Unleashing the impact of ecological civilization pilot policies on green technology innovation: Evidence from a novel SC-DID model," Energy Economics, Elsevier, vol. 125(C).
    18. Yan Wu & Chunlai Chen & Cong Hu, 2023. "The impacts of trade intensity with China on carbon emissions in belt and road countries," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 28(2), pages 558-577, April.
    19. Ion MICU & Alexandra MICU, 2016. "Financial Technology (Fintech) And Its Implementation On The Romanian Non-Banking Capital Market," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 11, pages 379-384, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Tao & Tian, Jie, 2025. "Dual transformation of family businesses under China's dual carbon goals: Exploring social impact and economic benefits," International Review of Financial Analysis, Elsevier, vol. 102(C).
    2. Dai, Jiapeng, 2025. "Is policy pilot a viable path to sustainable development? Attention allocation perspective," International Review of Financial Analysis, Elsevier, vol. 98(C).
    3. Wang, Danting & Sun, Yemeng, 2025. "Impact of green finance incentive policies on China's carbon neutrality capability: An evaluation based on the difference-in-differences model," Finance Research Letters, Elsevier, vol. 77(C).
    4. Luo, Zhenxiang & Zhou, Xiaolin, 2025. "Environmental courts, environmental investment, and corporate carbon emissions," Finance Research Letters, Elsevier, vol. 75(C).
    5. Chen, Songyi & Fan, Qianqian, 2025. "Can market-based environmental regulation promote corporate intelligent transformation: Evidence from the carbon emission trading system," Finance Research Letters, Elsevier, vol. 76(C).
    6. Chang, Lulu & Fang, Senhui, 2025. "Bringing carbon emission reduction to fruition: Insights from city’s low-carbon policy intensity," Finance Research Letters, Elsevier, vol. 72(C).
    7. Cai, Xiaotong & Yuan, Bo & Wu, Chao, 2025. "An integrated CEEMDAN and TCN-LSTM deep learning framework for forecasting," International Review of Financial Analysis, Elsevier, vol. 98(C).
    8. Peng, Shengnan & Liu, Chan & Wang, Ze & Ye, Zihan & Sun, Xialing & Tan, Zhanglu, 2024. "The impact of the carbon reduction policy effectiveness on energy companies' ESG performance," International Review of Financial Analysis, Elsevier, vol. 96(PB).
    9. Wan, Min & Wei, Dedai & Yu, Chenming, 2025. "Low-carbon pilot cities and financialization of listed companies: Inhibitory effects and policy analysis," Finance Research Letters, Elsevier, vol. 71(C).
    10. Goodell, John W. & Gurdgiev, Constantin & Karim, Sitara & Palma, Alessia, 2024. "Carbon emissions and liquidity management," International Review of Financial Analysis, Elsevier, vol. 95(PA).
    11. Wang, Juling & Liu, Lihua & Ou, Yangchao, 2024. "Low-carbon city pilot policy and corporate environmental violations: Evidence from heavily polluting firms in China," Finance Research Letters, Elsevier, vol. 65(C).
    12. Yu, Chenzi & Jin, Hong, 2025. "Labor agglomeration, industrial structure upgrading and low-carbon economic development," Finance Research Letters, Elsevier, vol. 74(C).
    13. Zhang, Ruifeng & Song, Shuhong & Xiu, Weiya, 2025. "Does the efficiency of capital allocation have spatial carbon emission spillover effects?," International Review of Financial Analysis, Elsevier, vol. 99(C).
    14. Lee, Chien-Chiang & Hussain, Jafar & Mu, Xian, 2024. "Renewable energy and carbon-neutral gaming: A holistic approach to sustainable electricity," Energy, Elsevier, vol. 297(C).
    15. Gong, Zhenting & Chen, Yanbei & Zhang, He & Chen, Fan, 2024. "Tail risk connectedness in the Carbon-Finance nexus: Evidence from a quantile spillover approach in China," Finance Research Letters, Elsevier, vol. 67(PB).
    16. Li, Yu & Yaacob, Mohd Hasimi & Xie, Tao, 2024. "Effects of China's low carbon pilot city policy on corporate green innovation: Considering the mediating role of public environmental concern," Finance Research Letters, Elsevier, vol. 65(C).
    17. Wang, Jingru & Liu, Tinghua & Aziz, Noshaba & Sui, Hongguang, 2024. "Exploring the role of trade credit in facilitating low-carbon development: Insights from Chinese enterprises," International Review of Financial Analysis, Elsevier, vol. 96(PB).
    18. He, Bei & Tang, Mingyue & Zhang, Chenming, 2024. "Financial technology, regional financial agglomeration, and urban economic resilience," Finance Research Letters, Elsevier, vol. 68(C).
    19. Dai, Shuo & Sun, Yonghe, 2025. "Corporate carbon emissions disclosure and stock price informativeness," Finance Research Letters, Elsevier, vol. 73(C).
    20. Zhang, Yi & Zhou, Long & Liu, Zhidong & Wu, Baoxiu, 2025. "Spillover of fear among the US and BRICS equity markets during the COVID-19 crisis and the Russo-Ukrainian conflict," The North American Journal of Economics and Finance, Elsevier, vol. 75(PA).

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:finlet:v:77:y:2025:i:c:s1544612325003733. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.elsevier.com/locate/frl .

    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.