Sowing Sustainability: How does fintech mitigate agricultural financial risk from climate change vulnerability

Ashraful Alam, Hasanul Banna, Naheed Nawazesh Roni and Mohammad Zoynul Abedin

International Review of Economics & Finance, 2025, vol. 101, issue C

Abstract: This study examines the impact of climate vulnerability on agricultural finance and explores the moderating role of fintech in this nexus. Using a sample of 1017 firms from 24 countries, we find that climate vulnerability is positively associated with agricultural finance, indicating that climate change exacerbates financial constraints for firms. Interestingly, our analysis of fintech's moderating effect reveals that fintech mitigates the negative impact of climate vulnerability on agricultural finance by promoting climate-smart agricultural practices and encouraging the adoption of insurance by farmers. Furthermore, our findings highlight that the Fourth Industrial Revolution, strong institutional quality, higher levels of innovation, and a country's readiness for technological adoption play critical roles in reducing the effects of climate vulnerability. Digital technologies, by improving operational efficiency and enabling better measurement and tracking of climate impacts, help reduce carbon emissions. These insights offer important managerial and policy implications, emphasising the need for integrating fintech and digital solutions to enhance resilience in agricultural finance.

Keywords: Climate change; Agricultural finance; Climate vulnerability; Climate-smart agriculture; Fintech; Innovation (search for similar items in EconPapers)
JEL-codes: F64 G23 G24 G32 O33 Q54 Q55 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1059056025003892
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:reveco:v:101:y:2025:i:c:s1059056025003892

DOI: 10.1016/j.iref.2025.104226

Access Statistics for this article

International Review of Economics & Finance is currently edited by H. Beladi and C. Chen

More articles in International Review of Economics & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().