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Fintech and urban environmental sustainability: Exploring the impact of financial technology on urban carbon emissions

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  • Rongrong Li
  • Siqi Zhang
  • Qiang Wang
  • Sailan Hu

Abstract

The rapid growth of financial technology (fintech) in China has obtained considerable attention, especially in terms of its effects on carbon emissions. Investigating the link between fintech advancement and emissions is essential for promoting sustainable urban development. This research utilizes panel data from 286 Chinese cities spanning 2000–2021, employing a fixed‐effects model to evaluate fintech's influence on carbon emissions. Additionally, a threshold model is applied to examine how different levels of research expenditure, environmental greening, and fixed asset investment modify this relationship. The results reveal that: (i) fintech expansion is linked to reduced carbon emissions; (ii) threshold effects are significant, with research investment, environmental greening, and fixed asset investment influencing the impact of fintech on emissions. More specifically, the reduction in emissions driven by fintech is strengthened by higher research investment, enhanced environmental greening, and increased fixed asset investment. The study concludes with policy suggestions, emphasizing the need to improve fintech infrastructure, elevate research funding, and focus on environmental greening programs.

Suggested Citation

  • Rongrong Li & Siqi Zhang & Qiang Wang & Sailan Hu, 2025. "Fintech and urban environmental sustainability: Exploring the impact of financial technology on urban carbon emissions," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(2), pages 2118-2136, April.
    • Handle: RePEc:wly:sustdv:v:33:y:2025:i:2:p:2118-2136
    DOI: 10.1002/sd.3212
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