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

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  • 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
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    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. Li, Meiyi & Zhou, Yaqiong & Wei, Yuanyuan & Chen, Siyuan & Li, Xiaoyuan, 2025. "Strategic orientations and environmental innovation," Finance Research Letters, Elsevier, vol. 86(PE).
    3. 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).

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    Keywords

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    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

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