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Analysis of the carbon emission reduction effect of Fintech and the transmission channel of green finance

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  • Xu, Jie
  • Chen, Fu
  • Zhang, Weiwei
  • Liu, Yiting
  • Li, Tingting

Abstract

Using provincial panel data from 2011–2020, this paper examines the impact of Fintech development on carbon emission intensity and the transmission channel of green finance in China by building multiple regression econometric models. It is found that Fintech development significantly reduces carbon emission intensity. The mechanism analysis of green finance as a transmission channel indicates that Fintech reduces carbon emission intensity by promoting the development of green finance. Using quantile regressions, it is verified that for different carbon emission intensity levels, the effect of Fintech is stronger at higher quantiles. Heterogeneity analysis shows that there is heterogeneity in the impact of Fintech on carbon emission reduction in the Eastern, Central and Western regions.

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  • Xu, Jie & Chen, Fu & Zhang, Weiwei & Liu, Yiting & Li, Tingting, 2023. "Analysis of the carbon emission reduction effect of Fintech and the transmission channel of green finance," Finance Research Letters, Elsevier, vol. 56(C).
    • Handle: RePEc:eee:finlet:v:56:y:2023:i:c:s1544612323004993
    DOI: 10.1016/j.frl.2023.104127
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    2. Alora, Aswin & Sahoo, Poonam & Sasidharan, Aghila, 2024. "Central bank digital currency adoption challenges- The case of an emerging nation," Finance Research Letters, Elsevier, vol. 59(C).
    3. Li, Tianyu & Yue, Xiao-Guang & Qin, Meng & Norena-Chavez, Diego, 2024. "Towards Paris Climate Agreement goals: The essential role of green finance and green technology," Energy Economics, Elsevier, vol. 129(C).
    4. Qin, Lu & Aziz, Ghazala & Hussan, Muhammad Wasim & Qadeer, Afifa & Sarwar, Suleman, 2024. "Empirical evidence of fintech and green environment: Using the green finance as a mediating variable," International Review of Economics & Finance, Elsevier, vol. 89(PA), pages 33-49.
    5. Qiong Shen & Rui Wu & Yuxi Pan & Yanchao Feng, 2024. "Explaining and modeling the impacts of inclusive finance on CO2 emissions in China integrated the intermediary role of energy poverty," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-19, December.

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