The impact of Fintech on corporate carbon emissions: Towards green and sustainable development

Chang'an Wang; Long Wang; Shikuan Zhao; Cunyi Yang; Khaldoon Albitar

doi:10.1002/bse.3778

journal article Open Access Apr 25, 2024

The impact of Fintech on corporate carbon emissions: Towards green and sustainable development

Chang'an Wang Long Wang

Shikuan Zhao Cunyi Yang

Khaldoon Albitar

Business Strategy and the Environment Vol. 33 No. 6 pp. 5776-5796 · Wiley

View at Publisher Save 10.1002/bse.3778

Abstract

AbstractFintech, as the fusion of finance and technology, has not only transformed the traditional financial industry and contributed to reshaping the real economy. But also, it holds the potential to offer a feasible solution for achieving green and sustainable development. This paper investigates the impact of Fintech on corporate carbon emissions (CCEs) by using data from the National Tax Survey Database (NTSD). The results suggest that Fintech development leads to a reduction in CCEs. Our findings remain robust even after using the instrumental variable approach to alleviate endogeneity problems. The mechanism analysis reveals that Fintech reduces CCEs via alleviating financing constraints, improving energy efficiency, and promoting green innovation. Heterogeneity analysis demonstrates that Fintech dramatically decreases CCEs from coal energy consumption, while increasing CCEs from consuming power and gas energy. Additionally, carbon emissions from state‐owned and foreign companies experience a more pronounced reduction through Fintech compared to those from private firms. Furthermore, firms in eastern and middle regions are more vulnerable to Fintech development. Moreover, enterprises in non‐high‐tech industries and high‐polluting industries exhibit noteworthy performance in reducing carbon emissions through Fintech adoption. This research offers policymakers a path to effectively govern CCEs and achieve their carbon reduction targets.

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References

Details

Published: Apr 25, 2024
Vol/Issue: 33(6)
Pages: 5776-5796
License: View

Authors

C

Chang'an Wang

School of Economics Southwestern University of Finance and Economics Chengdu China

L

Long Wang

China Institute for Educational Finance Research (CIEFR) Peking University Beijing China

S

Shikuan Zhao

School of Public Policy and Administration Chongqing University Chongqing China

C

Cunyi Yang

Lingnan College Sun Yat‐Sen University Guangzhou China

K

Khaldoon Albitar

Adam Smith Business School University of Glasgow Glasgow UK

Funding

National Natural Science Foundation of China Award: 71991474

Cite This Article

Chang'an Wang, Long Wang, Shikuan Zhao, et al. (2024). The impact of Fintech on corporate carbon emissions: Towards green and sustainable development. Business Strategy and the Environment, 33(6), 5776-5796. https://doi.org/10.1002/bse.3778

The impact of Fintech on corporate carbon emissions: Towards green and sustainable development

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