Blessing or curse? Fintech adoption and greenhouse gas emission intensity
Blessing or curse? Fintech adoption and greenhouse gas emission intensity
This study investigates the role of fintech adoption in shaping greenhouse gas (GHG) emissions. Exploiting China's setting and using panel data from 2400 observations and 281 prefecture-level cities in China from 2011 to 2019, we find that adopting fintech significantly reduces CO2 and SO2 emissions. Further analyses identify the underlying mechanisms as enhanced green innovation and increased fiscal transparency, which strengthen the ability of regions to protect the environment through public governance. To address the potential endogeneity issues arising from non-randomness and the non-exogenous shock of fintech adoption, we employ two novel instrumental variables as the geographical distance of the city to Hangzhou and the number of graduates to re-estimate our baseline results, which yield similar findings. We further find that this effect is more pronounced in regions with better Internet access and less intensive environmental regulations. Moreover, emissions reductions achieved from fintech adoption generate positive economic and social impacts.
CO emission intensity, Fintech adoption, Fiscal transparency, Green innovation
Li, Wenwen
fcdf4c96-f67a-4679-b7bb-2942be9945e7
Alharbi, Samar
f85d4eea-e401-4212-91c6-95346058e854
Cao, June
af0d62ff-d54c-412f-a152-cc04c63c7290
Li, Wanfu
f6215ac9-a292-4153-964d-d9f53568a485
19 January 2025
Li, Wenwen
fcdf4c96-f67a-4679-b7bb-2942be9945e7
Alharbi, Samar
f85d4eea-e401-4212-91c6-95346058e854
Cao, June
af0d62ff-d54c-412f-a152-cc04c63c7290
Li, Wanfu
f6215ac9-a292-4153-964d-d9f53568a485
Li, Wenwen, Alharbi, Samar, Cao, June and Li, Wanfu
(2025)
Blessing or curse? Fintech adoption and greenhouse gas emission intensity.
International Review of Economics and Finance, 97, [103810].
(doi:10.1016/j.iref.2024.103810).
Abstract
This study investigates the role of fintech adoption in shaping greenhouse gas (GHG) emissions. Exploiting China's setting and using panel data from 2400 observations and 281 prefecture-level cities in China from 2011 to 2019, we find that adopting fintech significantly reduces CO2 and SO2 emissions. Further analyses identify the underlying mechanisms as enhanced green innovation and increased fiscal transparency, which strengthen the ability of regions to protect the environment through public governance. To address the potential endogeneity issues arising from non-randomness and the non-exogenous shock of fintech adoption, we employ two novel instrumental variables as the geographical distance of the city to Hangzhou and the number of graduates to re-estimate our baseline results, which yield similar findings. We further find that this effect is more pronounced in regions with better Internet access and less intensive environmental regulations. Moreover, emissions reductions achieved from fintech adoption generate positive economic and social impacts.
Text
34 Blessing or curse- Fintech adoption and greenhouse gas emission intensity
- Version of Record
More information
Accepted/In Press date: 4 December 2024
e-pub ahead of print date: 5 December 2024
Published date: 19 January 2025
Keywords:
CO emission intensity, Fintech adoption, Fiscal transparency, Green innovation
Identifiers
Local EPrints ID: 501371
URI: http://eprints.soton.ac.uk/id/eprint/501371
ISSN: 1059-0560
PURE UUID: 5e1c08f7-9c3c-4c6c-892c-b55fd64d6e16
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Date deposited: 30 May 2025 16:35
Last modified: 22 Aug 2025 02:49
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Contributors
Author:
Wenwen Li
Author:
Samar Alharbi
Author:
June Cao
Author:
Wanfu Li
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