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Impact of fintech on carbon emissions in China: Evidence from the perspectives of green finance and financial efficiency

Author

Listed:
  • Cheng, Xiaoqiang
  • Guo, Wenjuan
  • Teng, Yue
  • Yao, Dingjun
  • Zhou, Hua

Abstract

This study explores the synergy between the development of financial technology (fintech) and green finance (GF) by evaluating city-level carbon emissions (CE), is explored against the backdrop of advancing China’s “dual” carbon peak (2030) and neutrality (2060) goals. Panel data spanning 2011–2019 from 249 Chinese cities were used, and panel fixed-effects regressions with year and city controls, clustered standard errors, and a series of robustness checks were performed. Results indicate an uneven distribution of effects, with the impact of fintech varying based on city size and geographic factors. Mechanism analysis shows that fintech improves GF initiatives and financial efficiency and lowers CE. The findings offer empirical evidence of fintech’s environmental benefits, suggest policies to promote fintech-enabled GF, tailor local support, and highlight environmental criteria in fintech design.

Suggested Citation

  • Cheng, Xiaoqiang & Guo, Wenjuan & Teng, Yue & Yao, Dingjun & Zhou, Hua, 2025. "Impact of fintech on carbon emissions in China: Evidence from the perspectives of green finance and financial efficiency," Finance Research Letters, Elsevier, vol. 86(PB).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pb:s1544612325016952
    DOI: 10.1016/j.frl.2025.108441
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