Driving low-carbon energy transition with FinTech: The role of government environmental attention

Xiuqin Wu, Yi Zhang and Chi-Chuan Lee

Energy, 2025, vol. 330, issue C

Abstract: Shifting from fossil fuels to clean/renewable energy has become imperative to address global warming. Nevertheless, the energy transition necessitates harmonizing energy systems with sustainable development goals, with sufficient financing and financial innovation being crucial components. This study explores whether and how FinTech development affects low-carbon energy transition (LCET) using data from 278 prefecture-level cities in China. The results demonstrate that FinTech can enhance urban LCET, and a spatial spillover effect exists from this influence. This conclusion remains robust after substituting key variables, adjusting the model setting, and mitigating endogeneity. The findings of the mechanism analyses reveal that the main channels through which FinTech promotes LCET are green technology innovation, industrial enhancement, and green finance. The heterogeneity analysis indicates that FinTech exerts a more significant influence in areas characterized by elevated levels of traditional finance and marketization. Additionally, the government's environmental attention positively influences and demonstrates a considerable threshold effect on the nexus between FinTech and LCET. This indicates that governments are crucial in directing financial resources towards low-carbon sectors.

Keywords: FinTech; Low-carbon energy transition; Government environmental attention; China (search for similar items in EconPapers)
JEL-codes: O16 P28 Q56 Q58 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:330:y:2025:i:c:s0360544225026350

DOI: 10.1016/j.energy.2025.136993

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