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The potential nexus between fintech and energy consumption: A new perspective on natural resource consumption

Author

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  • Zhu, Yi
  • Lin, Yangyi
  • Tan, Yanyu
  • Liu, Bin
  • Wang, Hao

Abstract

In fintech innovation, conventional financial service limits are exceeded, contributing to regional sustainable development by reducing strain on resources. It is crucial in mitigating the demand for natural resources (e.g., fossil energy consumption), essential for achieving regional sustainability. To investigate this, we examine how fintech influenced fossil energy consumption in 272 cities between 2006 and 2019, using fixed and threshold regression models. The findings underscore that fintech exerts a significant influence in escalating fossil energy consumption and augmenting energy intensity. Notably, the impact of fintech on fossil energy consumption witnesses a distinct hierarchical pattern, with prevalence in the eastern regions surpassing that of the central and western counterparts, and the impact of fintech on energy intensity is more prominent in western China. Fintech stimulates fossil energy consumption in the high-level fintech group while exhibiting insignificance concerning energy intensity in the low-level fintech group. A heightened degree of marketization can moderate fintech's impact on energy consumption and curbing energy intensity. Notably, a threshold in fintech development emerges at 3.466, where lower levels inhibit energy consumption, while levels exceeding 3.466 demonstrate a stimulative effect on energy consumption. The industrial structure is moderating in the nexus between fintech and urban fossil energy consumption, showcasing a threshold value of 0.268. When the industrial structure's developmental level is below this threshold, fintech promotes fossil energy consumption. while levels exceed 0.268 in industrial structure development, fintech facilitates energy conservation by restructuring industries. These findings offer relevant policy recommendations. Our findings can help alleviate resource consumption pressure through fintech and further informing the green and low-carbon transition of cities.

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  • Zhu, Yi & Lin, Yangyi & Tan, Yanyu & Liu, Bin & Wang, Hao, 2024. "The potential nexus between fintech and energy consumption: A new perspective on natural resource consumption," Resources Policy, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:jrpoli:v:89:y:2024:i:c:s0301420723013004
    DOI: 10.1016/j.resourpol.2023.104589
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    2. Lin, Yangyi & Cheung, Adrian (Wai Kong), 2024. "Climate policy uncertainty and energy transition: Evidence from prefecture-level cities in China," Energy Economics, Elsevier, vol. 139(C).
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    5. Fan, Min & Lu, Zhixi & Zhou, Yun & Wang, Jian, 2024. "Threshold and spillovers effects of fintech on China's energy dependence on fossil fuel," Resources Policy, Elsevier, vol. 91(C).
    6. Huang, Lihua, 2024. "Fintech inclusion in natural resource utilization, trade openness, resource productivity, recycling and minimizing waste generation: Does technology really drive economies toward green growth?," Resources Policy, Elsevier, vol. 90(C).
    7. Wu, Xiuqin & Zhang, Yi & Lee, Chi-Chuan, 2025. "Driving low-carbon energy transition with FinTech: The role of government environmental attention," Energy, Elsevier, vol. 330(C).
    8. Rongrong Li & Siqi Zhang & Qiang Wang & Sailan Hu, 2025. "Fintech and urban environmental sustainability: Exploring the impact of financial technology on urban carbon emissions," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(2), pages 2118-2136, April.
    9. Zhong, Meirui & Zhou, Ti & Wu, Qingtian, 2025. "Comparison between inclusive finance and green finance in alleviating energy poverty and the mediating role of energy structure," Energy Economics, Elsevier, vol. 147(C).
    10. Fengxiu Zhou & Hongling Bao & Chien-Chiang Lee, 2026. "Can sustainable finance improve carbon emission efficiency: evidence from China’s prefecture-level cities," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 12(1), pages 1-32, December.

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