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Financial Technology and Environmental Performance: International Evidence

Author

Listed:
  • Charilaos Mertzanis
  • Asma Houcine
  • Athanasios Pavlopoulos
  • Apostolos Vetsikas
  • Ilias Kampouris

Abstract

This study examines the impact of FinTech market growth on environmental performance across 58 countries (2013–2020), using Environmental Performance Index data and comprehensive FinTech finance metrics from the BIS. Findings reveal a consistently positive and statistically significant relationship, robust across fixed‐effects models, lagged specifications, alternative FinTech measures and instrumental variable techniques. FinTech enhances environmental outcomes by facilitating green finance, improving ESG transparency, enabling real‐time environmental monitoring and promoting energy efficiency through digital tools. The effect is especially pronounced in countries with strong institutional effectiveness. This research contributes new international evidence to the FinTech‐sustainability nexus, highlighting the diverse transmission channels and the role of governance in leveraging FinTech for environmental improvements.

Suggested Citation

  • Charilaos Mertzanis & Asma Houcine & Athanasios Pavlopoulos & Apostolos Vetsikas & Ilias Kampouris, 2026. "Financial Technology and Environmental Performance: International Evidence," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 31(2), pages 2664-2689, April.
    • Handle: RePEc:wly:ijfiec:v:31:y:2026:i:2:p:2664-2689
    DOI: 10.1002/ijfe.70065
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