Does Fintech improve green innovation efficiency in China? Insight from R&D activities, green finance, and government environmental awareness

Chang-Sheng Liao

The Quarterly Review of Economics and Finance, 2025, vol. 103, issue C

Abstract: This study examines the complex relationship between Fintech and green innovation efficiency (GIE) in China from the perspective of research and development (R&D) activities, using a threshold variable model to analyze data from 2010 to 2020. The findings show that the positive effect of Fintech on GIE only developed under certain conditions. Fintech and GIE have a nonlinear dynamic relationship within the R&D activities threshold model, suggesting that R&D activities have an optimal range and excessive R&D investment can cause disutility. The simultaneously generated inhibitory effect may offset the promotional effect of R&D investment on green efficiency through Fintech. Furthermore, government environmental awareness positively influences the relationship between Fintech and GIE and assists industries in conveniently obtaining funds to invest in green projects under a government-led Fintech policy orientation. This paper offers new insight into the relationship between Fintech and GIE, along with an analysis of the effects of Fintech on GIE depending on different conditions, such as R&D activities, green finance, and government environmental awareness.

Keywords: Fintech; Green innovation efficiency; R&D activities; Panel threshold model; Environment-induced R&D; Government environmental awareness (search for similar items in EconPapers)
JEL-codes: G29 Q56 R11 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:103:y:2025:i:c:s1062976925000766

DOI: 10.1016/j.qref.2025.102035

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