Does Fintech improve the carbon reduction effect of green credit policy? Evidence from China

Jiayu Wan, Zihan Niu and Bin Li

Economic Analysis and Policy, 2025, vol. 85, issue C, 1258-1269

Abstract: Technological advancements have driven financial innovation, improving market efficiency and demonstrating potential to enhance the effectiveness of green credit policies. Although extensive research has explored the impacts of green finance policies, few studies have investigated the role of Fintech in shaping these effects. This study employs panel data from Chinese-listed companies between 2007 and 2021 to analyze how Fintech reinforces the carbon reduction impact of green credit policies. Our findings reveal that Fintech significantly amplifies these outcomes by improving information quality in the pre-loan phase, easing funding constraints during the lending phase, and ensuring targeted environmental use of funds in the post-loan phase. Additionally, we identify conditions that optimize Fintech's effectiveness, such as firms’ political connections, the economic development levels of their regions, and the degree of marketization. These results underscore Fintech's potential in facilitating inclusive low-carbon transitions and provide valuable insights for enhancing green finance strategies.

Keywords: Green credit policy; Fintech; Corporate carbon reduction (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0313592625000165
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:85:y:2025:i:c:p:1258-1269

DOI: 10.1016/j.eap.2025.01.016

Access Statistics for this article

Economic Analysis and Policy is currently edited by Clevo Wilson

More articles in Economic Analysis and Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu (repec@elsevier.com).