Harnessing FinTech for green growth: financial innovations and energy efficiency in OECD nations

Abu Bakkar Siddik, Md. Saheb Ali Mondal, Myne Uddin and Li Yong

Research in International Business and Finance, 2025, vol. 79, issue C

Abstract: We investigate the influence of FinTech startup financing on energy efficiency in 32 OECD countries from 2010 to 2022, considering the roles of financial development, financial institutions, and financial markets. Using a comprehensive dataset, we apply Data Envelopment Analysis (DEA) with a Super Slack-Based Measure (Super-SBM) to calculate energy efficiency scores, along with econometric techniques to ensure robustness and explore non-linear effects. Our findings demonstrate that FinTech financing significantly enhances energy efficiency, particularly in countries with more advanced financial systems. Additionally, financial development through well-established institutions and markets plays a crucial role in promoting energy efficiency, with the effects being stronger in highly developed countries. The quantile analysis further reveals that these impacts are asymmetric, with stronger effects observed in countries that already have higher levels of energy efficiency. These results suggest that while FinTech and financial development contribute positively to energy efficiency, their influence varies across different country contexts. Policymakers should focus on strengthening financial systems in less-developed nations to fully capitalize on FinTech innovations for improving sustainability.

Keywords: FinTech Financing; Energy Efficiency; Financial Development; OECD Countries; Data Envelopment Analysis (DEA) (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:79:y:2025:i:c:s0275531925003186

DOI: 10.1016/j.ribaf.2025.103062

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