IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v16y2019i22p4340-d284451.html
   My bibliography  Save this article

Can FinTech Development Curb Agricultural Nonpoint Source Pollution?

Author

Listed:
  • Song Jiang

    (School of Economics and Finance, Chongqing University of Technology, Chongqing 400054, China
    Chongqing Research Center of Labor Economics and Human Resources, Chongqing 400054, China)

  • Shuang Qiu

    (School of Economics and Finance, Chongqing University of Technology, Chongqing 400054, China)

  • Hong Zhou

    (Chongqing 208 Survey and Design Institute, Chongqing 400700, China)

  • Meilan Chen

    (International Business School, Guangdong University of Finance and Economics, 1 Xuehai Road, Foshan 528100, Guangdong, China)

Abstract

The green development of FinTech empowerment has become a compelling theme in economic development. In this study, based on the weighted least squares (WLS) and threshold regression methods of cross-sectional data, we empirically examine the impact of FinTech development on agricultural nonpoint source (NPS) pollution, a major cause of impaired surface water quality. Our results show that there is an inverted “U” shape relationship between the development of FinTech and agricultural NPS pollution. That is, after crossing a “threshold value”, the level of FinTech development can curb agricultural NPS pollution. At the structural level, the availability of FinTech services, the FinTech infrastructure, and the agricultural NPS pollution also have an inverted “U” shape relationship. At the threshold effect, in the developing stage of an agricultural economy, the overall level of FinTech development, the use of FinTech services, the availability of FinTech services, and the FinTech infrastructure have an inverted “U” shape relationship with agricultural NPS pollution. On the other hand, in the developed stage of an agricultural economy, the impact of FinTech development and its structure on agricultural NPS pollution is insignificant. Hence, we can conclude that FinTech development can help reduce agricultural NPS pollution in under-developed regions. However, due to the fact that a “U” shape relationship always exists between FinTech service quality and agricultural NPS pollution, the quality of FinTech service should be the main focus to reduce agricultural NPS pollution more effectively.

Suggested Citation

  • Song Jiang & Shuang Qiu & Hong Zhou & Meilan Chen, 2019. "Can FinTech Development Curb Agricultural Nonpoint Source Pollution?," IJERPH, MDPI, vol. 16(22), pages 1-22, November.
    • Handle: RePEc:gam:jijerp:v:16:y:2019:i:22:p:4340-:d:284451
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/16/22/4340/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1660-4601/16/22/4340/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sergey S. Rabotyagov & Adriana M. Valcu & Catherine L. Kling, 2014. "Reversing Property Rights: Practice-Based Approaches for Controlling Agricultural Nonpoint-source Water Pollution When Emissions Aggregate Nonlinearly," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(2), pages 397-419.
    2. Arun S. Malik & David Letson & Stephen R. Crutchfield, 1993. "Point/Nonpoint Source Trading of Pollution Abatement: Choosing the Right Trading Ratio," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(4), pages 959-967.
    3. Jagtiani, Julapa & Lemieux, Catharine, 2018. "Do fintech lenders penetrate areas that are underserved by traditional banks?," Journal of Economics and Business, Elsevier, vol. 100(C), pages 43-54.
    4. Marc O. Ribaudo, 2004. "Policy Explorations and Implications for Nonpoint Source Pollution Control: Discussion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1220-1221.
    5. York, Richard & Rosa, Eugene A. & Dietz, Thomas, 2003. "STIRPAT, IPAT and ImPACT: analytic tools for unpacking the driving forces of environmental impacts," Ecological Economics, Elsevier, vol. 46(3), pages 351-365, October.
    6. Godfrey, Leslie G, 1978. "Testing for Higher Order Serial Correlation in Regression Equations When the Regressors Include Lagged Dependent Variables," Econometrica, Econometric Society, vol. 46(6), pages 1303-1310, November.
    7. Zhang, Yue-Jun, 2011. "The impact of financial development on carbon emissions: An empirical analysis in China," Energy Policy, Elsevier, vol. 39(4), pages 2197-2203, April.
    8. Bruce E. Hansen, 2000. "Sample Splitting and Threshold Estimation," Econometrica, Econometric Society, vol. 68(3), pages 575-604, May.
    9. David F. Perkis & Timothy N. Cason & Wallace E. Tyner, 2016. "An Experimental Investigation of Hard and Soft Price Ceilings in Emissions Permit Markets," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(4), pages 703-718, April.
    10. Ronald C. Griffin & Daniel W. Bromley, 1982. "Agricultural Runoff as a Nonpoint Externality: A Theoretical Development," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(3), pages 547-552.
    11. Mohamed Amine Boutabba, 2014. "The impact of financial development, income, energy and trade on carbon emissions: Evidence from the Indian economy," Post-Print hal-02877966, HAL.
    12. Caffera Marcelo & Chávez Carlos, 2016. "The Regulatory Choice of Noncompliance in the Lab: Effect on Quantities, Prices, and Implications for the Design of a Cost-Effective Policy," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(2), pages 727-753, April.
    13. James S. Shortle & James W. Dunn, 1986. "The Relative Efficiency of Agricultural Source Water Pollution Control Policies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(3), pages 668-677.
    14. Harvey, A. C. & Phillips, G. D. A., 1981. "Testing for heteroscedasticity in simultaneous equation models," Journal of Econometrics, Elsevier, vol. 15(3), pages 311-340, April.
    15. Hongjun Dai & Tao Sun & Kun Zhang & Wen Guo, 2015. "Research on Rural Nonpoint Source Pollution in the Process of Urban-Rural Integration in the Economically-Developed Area in China Based on the Improved STIRPAT Model," Sustainability, MDPI, vol. 7(1), pages 1-12, January.
    16. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    17. Breusch, T S & Pagan, A R, 1979. "A Simple Test for Heteroscedasticity and Random Coefficient Variation," Econometrica, Econometric Society, vol. 47(5), pages 1287-1294, September.
    18. Rabotyagov, Sergey S. & Valcu, Adriana M. & Kling, Catherine L., 2012. "Reversing The Property Rights: A Practice-Based Trading Approach For Controlling Agricultural Nonpoint-Source Water Pollution," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124371, Agricultural and Applied Economics Association.
    19. Sagar, Ambuj D. & Najam, Adil, 1998. "The human development index: a critical review," Ecological Economics, Elsevier, vol. 25(3), pages 249-264, June.
    20. Kuo Chuen, David LEE & Teo, Ernie G.S., 2015. "Emergence of FinTech and the LASIC principles," Journal of Financial Perspectives, EY Global FS Institute, vol. 3(3), pages 24-36.
    21. Kevin Holvoet & Imca Sampers & Marleen Seynnaeve & Liesbeth Jacxsens & Mieke Uyttendaele, 2014. "Agricultural and Management Practices and Bacterial Contamination in Greenhouse versus Open Field Lettuce Production," IJERPH, MDPI, vol. 12(1), pages 1-32, December.
    22. Boutabba, Mohamed Amine, 2014. "The impact of financial development, income, energy and trade on carbon emissions: Evidence from the Indian economy," Economic Modelling, Elsevier, vol. 40(C), pages 33-41.
    23. Makoto Tanaka, 2012. "Multi-Sector Model of Tradable Emission Permits," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 51(1), pages 61-77, January.
    24. Daniela Gabor & Sally Brooks, 2017. "The digital revolution in financial inclusion: international development in the fintech era," New Political Economy, Taylor & Francis Journals, vol. 22(4), pages 423-436, July.
    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. Lingyan Xu & Zhuoyun Zhou & Jianguo Du, 2020. "An Evolutionary Game Model for the Multi-Agent Co-Governance of Agricultural Non-Point Source Pollution Control under Intensive Management Pattern in China," IJERPH, MDPI, vol. 17(7), pages 1-19, April.
    2. Xiang Gao & Binglong Li & Song Jiang & Yunbin Nie, 2021. "Can Increasing Scale Efficiency Curb Agricultural Nonpoint Source Pollution?," IJERPH, MDPI, vol. 18(16), pages 1-17, August.
    3. Guobin Geng & Yang Shen & Chenguang Dong, 2024. "The Impact of Green Finance on Agricultural Non-Point Source Pollution: Analysis of the Role of Environmental Regulation and Rural Land Transfer," Land, MDPI, vol. 13(9), pages 1-28, September.
    4. Shen Yang & Zhang Xiuwu, 2024. "Cleaner Production: Analysis of the Role and Path of Green Finance in Controlling Agricultural Nonpoint Source Pollution," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 18(1), pages 1-13.
    5. Bryane Michael & Nataliya Koroleska & Andy Tai & David Wai Ho Wong, 2022. "A critical look at using financial technology policy to promote the sustainable development goals," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1911-1920, December.
    6. Phemelo Tamasiga & Helen Onyeaka & El houssin Ouassou, 2022. "Unlocking the Green Economy in African Countries: An Integrated Framework of FinTech as an Enabler of the Transition to Sustainability," Energies, MDPI, vol. 15(22), pages 1-28, November.

    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. Ling Xiong & Shaozhou Qi, 2018. "Financial Development And Carbon Emissions In Chinese Provinces: A Spatial Panel Data Analysis," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 63(02), pages 447-464, March.
    2. Charfeddine, Lanouar & Ben Khediri, Karim, 2016. "Financial development and environmental quality in UAE: Cointegration with structural breaks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 1322-1335.
    3. Anh-Tu Nguyen & Shih-Hao Lu & Phuc Thanh Thien Nguyen, 2021. "Validating and Forecasting Carbon Emissions in the Framework of the Environmental Kuznets Curve: The Case of Vietnam," Energies, MDPI, vol. 14(11), pages 1-38, May.
    4. Xiang, Yitian & Cui, Haotian & Bi, Yunxiao, 2023. "The impact and channel effects of banking competition and government intervention on carbon emissions: Evidence from China," Energy Policy, Elsevier, vol. 175(C).
    5. Miguel Angel Esquivias & Owais ibni Hassan & Aisha Sheikh, 2023. "Evidence-based Examination of the Consequences of Financial Development on Environmental Degradation in the Indian Setting, Using the ARDL Model," International Journal of Energy Economics and Policy, Econjournals, vol. 13(1), pages 281-290, January.
    6. Iftikhar Yasin & Nawaz Ahmad & Muhammad Aslam Chaudhary, 2021. "The impact of financial development, political institutions, and urbanization on environmental degradation: evidence from 59 less-developed economies," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(5), pages 6698-6721, May.
    7. Guangyue Xu & Juanjuan Li & Peter M. Schwarz & Hualiu Yang & Huiying Chang, 2022. "Rural financial development and achieving an agricultural carbon emissions peak: an empirical analysis of Henan Province, China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(11), pages 12936-12962, November.
    8. Uddin, Md. Kamal & Pan, Xiongfeng & Saima, Umme & Zhang, Chengming, 2022. "Influence of financial development on energy intensity subject to technological innovation: Evidence from panel threshold regression," Energy, Elsevier, vol. 239(PD).
    9. Shahbaz, Muhammad & Hoang, Thi Hong Van & Mahalik, Mantu Kumar & Roubaud, David, 2017. "Energy consumption, financial development and economic growth in India: New evidence from a nonlinear and asymmetric analysis," Energy Economics, Elsevier, vol. 63(C), pages 199-212.
    10. Asongu, Simplice A. & Odhiambo, Nicholas M., 2021. "Inequality, finance and renewable energy consumption in Sub-Saharan Africa," Renewable Energy, Elsevier, vol. 165(P1), pages 678-688.
    11. Li, Junhui & Li, Guowei, 2023. "What drives resource sustainability in Asia? Discovering the moderating role of financial development and industrialization," Resources Policy, Elsevier, vol. 85(PA).
    12. Asongu, Simplice & Vo, Xuan, 2020. "The Effect of Finance on Inequality in Sub-Saharan Africa: Avoidable CO2 emissions Thresholds," MPRA Paper 103233, University Library of Munich, Germany.
    13. Russell Davidson & Victoria Zinde‐Walsh, 2017. "Advances in specification testing," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 50(5), pages 1595-1631, December.
    14. Xueyang Liu & Xiaoxing Liu, 2021. "Can Financial Development Curb Carbon Emissions? Empirical Test Based on Spatial Perspective," Sustainability, MDPI, vol. 13(21), pages 1-19, October.
    15. Shahzad, Syed Jawad Hussain & Kumar, Ronald Ravinesh & Zakaria, Muhammad & Hurr, Maryam, 2017. "Carbon emission, energy consumption, trade openness and financial development in Pakistan: A revisit," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 185-192.
    16. Vaishali S. Dhingra, 2023. "Financial development, economic growth, globalisation and environmental quality in BRICS economies: evidence from ARDL bounds test approach," Economic Change and Restructuring, Springer, vol. 56(3), pages 1651-1682, June.
    17. Mansor H. Ibrahim, 2018. "Trade–finance complementarity and carbon emission intensity: panel evidence from middle-income countries," Environment Systems and Decisions, Springer, vol. 38(4), pages 489-500, December.
    18. AhAtil, Ahmed & Bouheni, Faten Ben & Lahiani, Amine & Shahbaz, Muhammad, 2019. "Factors influencing CO2 Emission in China: A Nonlinear Autoregressive Distributed Lags Investigation," MPRA Paper 91190, University Library of Munich, Germany, revised 02 Jan 2019.
    19. Shahbaz, Muhammad & Nasir, Muhammad Ali & Roubaud, David, 2018. "Environmental degradation in France: The effects of FDI, financial development, and energy innovations," Energy Economics, Elsevier, vol. 74(C), pages 843-857.
    20. Muhammad Shahbaz & Avik Sinha, 2019. "Environmental Kuznets curve for CO2emissions: a literature survey," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 46(1), pages 106-168, January.

    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:gam:jijerp:v:16:y:2019:i:22:p:4340-:d:284451. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.