IDEAS home Printed from https://ideas.repec.org/a/eee/reveco/v101y2025ics1059056025003892.html

Sowing Sustainability: How does fintech mitigate agricultural financial risk from climate change vulnerability

Author

Listed:
  • Alam, Ashraful
  • Banna, Hasanul
  • Roni, Naheed Nawazesh
  • Abedin, Mohammad Zoynul

Abstract

This study examines the impact of climate vulnerability on agricultural finance and explores the moderating role of fintech in this nexus. Using a sample of 1017 firms from 24 countries, we find that climate vulnerability is positively associated with agricultural finance, indicating that climate change exacerbates financial constraints for firms. Interestingly, our analysis of fintech's moderating effect reveals that fintech mitigates the negative impact of climate vulnerability on agricultural finance by promoting climate-smart agricultural practices and encouraging the adoption of insurance by farmers. Furthermore, our findings highlight that the Fourth Industrial Revolution, strong institutional quality, higher levels of innovation, and a country's readiness for technological adoption play critical roles in reducing the effects of climate vulnerability. Digital technologies, by improving operational efficiency and enabling better measurement and tracking of climate impacts, help reduce carbon emissions. These insights offer important managerial and policy implications, emphasising the need for integrating fintech and digital solutions to enhance resilience in agricultural finance.

Suggested Citation

  • Alam, Ashraful & Banna, Hasanul & Roni, Naheed Nawazesh & Abedin, Mohammad Zoynul, 2025. "Sowing Sustainability: How does fintech mitigate agricultural financial risk from climate change vulnerability," International Review of Economics & Finance, Elsevier, vol. 101(C).
    • Handle: RePEc:eee:reveco:v:101:y:2025:i:c:s1059056025003892
    DOI: 10.1016/j.iref.2025.104226
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1059056025003892
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.iref.2025.104226?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. Chai, Nana & Abedin, Mohammad Zoynul & Yang, Lian & Shi, Baofeng, 2025. "Farmers' credit risk evaluation with an explainable hybrid ensemble approach: A closer look in microfinance," Pacific-Basin Finance Journal, Elsevier, vol. 89(C).
    2. Bansal, Sanchita & Singh, Shifali & Nangia, Priya, 2022. "Assessing the role of natural resource utilization in attaining select sustainable development goals in the era of digitalization," Resources Policy, Elsevier, vol. 79(C).
    3. World Bank, 2016. "Making Climate Finance Work in Agriculture," World Bank Publications - Reports 24686, The World Bank Group.
    4. Hongpeng Guo & Boqun Fan & Chulin Pan, 2021. "Study on Mechanisms Underlying Changes in Agricultural Carbon Emissions: A Case in Jilin Province, China, 1998–2018," IJERPH, MDPI, vol. 18(3), pages 1-17, January.
    5. Banna, Hasanul & Kabir Hassan, M. & Rashid, Mamunur, 2021. "Fintech-based financial inclusion and bank risk-taking: Evidence from OIC countries," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 75(C).
    6. Hasan, Morshadul & Hoque, Ariful & Abedin, Mohammad Zoynul & Gasbarro, Dominic, 2024. "FinTech and sustainable development: A systematic thematic analysis using human- and machine-generated processing," International Review of Financial Analysis, Elsevier, vol. 95(PC).
    7. Ani L. Katchova & Sierra J. Enlow, 2013. "Financial performance of publicly‐traded agribusinesses," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 73(1), pages 58-73, May.
    8. Khatri-Chhetri, Arun & Aggarwal, P.K. & Joshi, P.K. & Vyas, S., 2017. "Farmers' prioritization of climate-smart agriculture (CSA) technologies," Agricultural Systems, Elsevier, vol. 151(C), pages 184-191.
    9. Charfeddine, Lanouar & Kahia, Montassar, 2019. "Impact of renewable energy consumption and financial development on CO2 emissions and economic growth in the MENA region: A panel vector autoregressive (PVAR) analysis," Renewable Energy, Elsevier, vol. 139(C), pages 198-213.
    10. Cihak, Martin,Demirguc-Kunt, Asli,Feyen, Erik,Levine, Ross, 2012. "Benchmarking financial systems around the world," Policy Research Working Paper Series 6175, The World Bank.
    11. Liu, Bei & Ren, Baoping & Jin, Fei, 2025. "Does climate risk affect the ease of access to credit for farmers? Evidence from CHFS," International Review of Economics & Finance, Elsevier, vol. 97(C).
    12. David Zilberman & Leslie Lipper & Nancy McCarthy & Ben Gordon, 2018. "Innovation in Response to Climate Change," Natural Resource Management and Policy, in: Leslie Lipper & Nancy McCarthy & David Zilberman & Solomon Asfaw & Giacomo Branca (ed.), Climate Smart Agriculture, pages 49-74, Springer.
    13. Chen, Shuai & Chen, Xiaoguang & Xu, Jintao, 2016. "Impacts of climate change on agriculture: Evidence from China," Journal of Environmental Economics and Management, Elsevier, vol. 76(C), pages 105-124.
    14. Zhao, Yang & Goodell, John W. & Wang, Yong & Abedin, Mohammad Zoynul, 2023. "Fintech, macroprudential policies and bank risk: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 87(C).
    15. Peter ADAMIŠIN & Rastislav KOTULIČ & Ivana KRAVČÁKOVÁ VOZÁROVÁ & Roman VAVREK, 2015. "Natural climatic conditions as a determinant of productivity and economic efficiency of agricultural entities," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(6), pages 265-274.
    16. Chen, Shuai & Gong, Binlei, 2021. "Response and adaptation of agriculture to climate change: Evidence from China," Journal of Development Economics, Elsevier, vol. 148(C).
    17. Cameron, A. Colin & Gelbach, Jonah B. & Miller, Douglas L., 2011. "Robust Inference With Multiway Clustering," Journal of Business & Economic Statistics, American Statistical Association, vol. 29(2), pages 238-249.
    18. Hasanul Banna, 2025. "Digital Financial Inclusion And Bank Stability In A Dual Banking System: Does Financialliteracy Matter?," Journal of Islamic Monetary Economics and Finance, Bank Indonesia, vol. 11(1), pages 63-90, March.
    19. Yu, Lili & Zhao, Duanyang & Xue, Zihao & Gao, Yang, 2020. "Research on the use of digital finance and the adoption of green control techniques by family farms in China," Technology in Society, Elsevier, vol. 62(C).
    20. Jon Hellin & Eleanor Fisher, 2019. "The Achilles heel of climate-smart agriculture," Nature Climate Change, Nature, vol. 9(7), pages 493-494, July.
    21. Njangang, Henri & Padhan, Hemachandra & Tiwari, Aviral Kumar, 2024. "From aid to resilience: Assessing the impact of climate finance on energy vulnerability in developing countries," Energy Economics, Elsevier, vol. 134(C).
    22. Cheng, Xiaoqiang & Yao, Dingjun & Qian, Yuanyuan & Wang, Bin & Zhang, Deliang, 2023. "How does fintech influence carbon emissions: Evidence from China's prefecture-level cities," International Review of Financial Analysis, Elsevier, vol. 87(C).
    23. Abbasi, Kaleemullah & Alam, Ashraful & Brohi, Noor Ahmed & Brohi, Imtiaz Ali & Nasim, Shahzad, 2021. "P2P lending Fintechs and SMEs’ access to finance," Economics Letters, Elsevier, vol. 204(C).
    24. Ani L. Katchova & Sierra J. Enlow, 2013. "Financial performance of publicly‐traded agribusinesses," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 73(1), pages 58-73, May.
    25. Tao, Ran & Su, Chi-Wei & Naqvi, Bushra & Rizvi, Syed Kumail Abbas, 2022. "Can Fintech development pave the way for a transition towards low-carbon economy: A global perspective," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    26. Ricky P. Laureta & Ric Ryan H. Regalado & Ermar B. De La Cruz, 2021. "Climate vulnerability scenario of the agricultural sector in the Bicol River Basin, Philippines," Climatic Change, Springer, vol. 168(1), pages 1-18, September.
    27. Nenavath, Sreenu, 2022. "Impact of fintech and green finance on environmental quality protection in India: By applying the semi-parametric difference-in-differences (SDID)," Renewable Energy, Elsevier, vol. 193(C), pages 913-919.
    28. Zeng, Hongjun & Abedin, Mohammad Zoynul & Lucey, Brian, 2024. "Heterogeneous dependence of the FinTech Index with Global Systemically Important Banks (G-SIBs)," Finance Research Letters, Elsevier, vol. 64(C).
    29. You, Yu & Yu, Zongdai & Zhang, Wenqiao & Lu, Lei, 2023. "FinTech platforms and mutual fund markets," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 84(C).
    30. Jianhong E. Mu & Benjamin M. Sleeter & John T. Abatzoglou & John M. Antle, 2017. "Climate impacts on agricultural land use in the USA: the role of socio-economic scenarios," Climatic Change, Springer, vol. 144(2), pages 329-345, September.
    31. Zhao, Yang & Goodell, John W. & Dong, Qingli & Wang, Yong & Abedin, Mohammad Zoynul, 2022. "Overcoming spatial stratification of fintech inclusion: Inferences from across Chinese provinces to guide policy makers," International Review of Financial Analysis, Elsevier, vol. 84(C).
    32. Julapa Jagtiani & Catharine Lemieux, 2019. "The roles of alternative data and machine learning in fintech lending: Evidence from the LendingClub consumer platform," Financial Management, Financial Management Association International, vol. 48(4), pages 1009-1029, December.
    33. Henry He Huang & Joseph Kerstein & Chong Wang, 2018. "The impact of climate risk on firm performance and financing choices: An international comparison," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(5), pages 633-656, July.
    34. Lee, In & Shin, Yong Jae, 2018. "Fintech: Ecosystem, business models, investment decisions, and challenges," Business Horizons, Elsevier, vol. 61(1), pages 35-46.
    35. Amin, Qazi Awais & Cumming, Douglas, 2023. "The politician as a CEO, corporate governance and firm value," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 87(C).
    36. Abbasi, Kaleemullah & Alam, Ashraful & Goodell, John W. & Du, Anna Min & Brohi, Noor Ahmed, 2025. "Vulnerability of energy firms to climate risk: Does fintech development help?," Energy Economics, Elsevier, vol. 146(C).
    37. Abbasi, Kaleemullah & Alam, Ashraful & Du, Min (Anna) & Huynh, Toan Luu Duc, 2021. "FinTech, SME efficiency and national culture: Evidence from OECD countries," Technological Forecasting and Social Change, Elsevier, vol. 163(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chen, Ruoyu & Wu, Yang & Wu, Xiaohan & Tian, Xu, 2026. "FinTech and trade credit financing: Evidence from Chinese listed firms," Pacific-Basin Finance Journal, Elsevier, vol. 96(C).
    2. Chilufya, Brian & Kalusa, Louis, 2026. "Effects Of Climate Change Risks on the Financial Performance of Agricultural Firms in Zambia: Evidence from Kabwe District," African Journal of Commercial Studies, African Journal of Commercial Studies, vol. 7(2).
    3. Li, Meiyi & Zhou, Yaqiong & Wei, Yuanyuan & Chen, Siyuan & Li, Xiaoyuan, 2025. "Strategic orientations and environmental innovation," Finance Research Letters, Elsevier, vol. 86(PE).

    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. Hasan, Morshadul & Hoque, Ariful & Abedin, Mohammad Zoynul & Gasbarro, Dominic, 2024. "FinTech and sustainable development: A systematic thematic analysis using human- and machine-generated processing," International Review of Financial Analysis, Elsevier, vol. 95(PC).
    2. Abbasi, Kaleemullah & Alam, Ashraful & Goodell, John W. & Du, Anna Min & Brohi, Noor Ahmed, 2025. "Vulnerability of energy firms to climate risk: Does fintech development help?," Energy Economics, Elsevier, vol. 146(C).
    3. Pandey, Dharen Kumar & Hassan, M.Kabir & Kumari, Vineeta & Zaied, Younes Ben & Rai, Varun Kumar, 2024. "Mapping the landscape of FinTech in banking and finance: A bibliometric review," Research in International Business and Finance, Elsevier, vol. 67(PA).
    4. Liu, Xukang & Ma, Chao-Qun & Ren, Yi-Shuai, 2025. "ESG reactions to fintech: The role of cross-border capital flows," Research in International Business and Finance, Elsevier, vol. 76(C).
    5. Choudhary, Priya & Thenmozhi, M., 2024. "Fintech and financial sector: ADO analysis and future research agenda," International Review of Financial Analysis, Elsevier, vol. 93(C).
    6. Chien, FengSheng & Zhang, YunQian & Lin, ZiQi & Lin, YuChao & Sadiq, Muhammad, 2024. "An integrated perspective on fintech, green innovation and natural resource rent: Evidence from Asia," Resources Policy, Elsevier, vol. 92(C).
    7. repec:ags:aaea22:335522 is not listed on IDEAS
    8. Liu, Ziheng, 2025. "CO2-driven crop comparative advantage and planting decision: Evidence from US cropland," Food Policy, Elsevier, vol. 130(C).
    9. Qingen Gai & Chengzheng Li & Peng Zhang, 2025. "How does temperature affect rural income: Channels and implication of adaptation," Southern Economic Journal, John Wiley & Sons, vol. 92(2), pages 272-312, October.
    10. Lisha, Liu & Mousa, Saeed & Arnone, Gioia & Muda, Iskandar & Huerta-Soto, Rosario & Shiming, Zhai, 2023. "Natural resources, green innovation, fintech, and sustainability: A fresh insight from BRICS," Resources Policy, Elsevier, vol. 80(C).
    11. Cuadros-Solas, Pedro J. & Cubillas, Elena & Salvador, Carlos, 2023. "Does alternative digital lending affect bank performance? Cross-country and bank-level evidence," International Review of Financial Analysis, Elsevier, vol. 90(C).
    12. Chen, Xiaoguang & Cui, Xiaomeng & Gao, Jing, 2023. "Differentiated agricultural sensitivity and adaptability to rising temperatures across regions and sectors in China," Journal of Environmental Economics and Management, Elsevier, vol. 119(C).
    13. Lu, Jian & Wang, Congcong & Xie, Tangkun & Zhang, Xueying, 2025. "FinTech and corporate pollution reduction," Research in International Business and Finance, Elsevier, vol. 80(C).
    14. Lv, Zhaojiang & Chen, Lan & Ali, Syed Ahtsham & Muda, Iskandar & Alromaihi, Abdullah & Boltayev, Jurabek Yusufovich, 2024. "Financial technologies, green technologies and natural resource nexus with sustainable development goals: Evidence from resource abundant economies using MMQR estimation," Resources Policy, Elsevier, vol. 89(C).
    15. Ma, Chao-Qun & Liu, Xukang & Klein, Tony & Ren, Yi-Shuai, 2025. "Decoding the nexus: How fintech and AI stocks drive the future of sustainable finance," International Review of Economics & Finance, Elsevier, vol. 98(C).
    16. Ziheng Liu, 2025. "The behavioral dimension of CO2 fertilization effect: Evidence from US harvesting records," Agricultural Economics, International Association of Agricultural Economists, vol. 56(1), pages 5-26, January.
    17. Xiaomeng Cui & Wei Xie, 2022. "Adapting Agriculture to Climate Change through Growing Season Adjustments: Evidence from Corn in China," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(1), pages 249-272, January.
    18. Adugna, Hailu, 2024. "Fintech dividend: How would digital financial services impact income inequality across countries?," Technology in Society, Elsevier, vol. 77(C).
    19. Giakoumelou, Anastasia & Salvi, Antonio & Bekiros, Stelios & Onorato, Grazia, 2024. "ESG and FinTech funding in the EU," Research in International Business and Finance, Elsevier, vol. 69(C).
    20. Liu, Hui & Chau, Ka Yin & Duong, Nam Tien & Hoang, Nguyen-Khai, 2024. "Fintech, financial inclusion, mineral resources and environmental quality. An economic advancement perspective from China and Vietnam," Resources Policy, Elsevier, vol. 89(C).
    21. Xiaoguang Chen & Madhu Khanna & Lu Yang, 2022. "The impacts of temperature on Chinese food processing firms," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(2), pages 256-279, April.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

    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:reveco:v:101:y:2025:i:c:s1059056025003892. 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/inca/620165 .

    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.