Can fintech improve total factor energy efficiency? Evidence from China’s listed companies

Heqi Zhang (), Xiaonan Hou () and Zhenzhen Rao ()
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Heqi Zhang: Zhongnan University of Economics and Law
Xiaonan Hou: Zhongnan University of Economics and Law
Zhenzhen Rao: Zhongnan University of Economics and Law

Climatic Change, 2025, vol. 178, issue 8, No 5, 20 pages

Abstract: Abstract In the context of the “dual carbon” goal, fintech provides new insights for green development with emission reduction and energy conservation as the core. This research utilizes samples of China’s listed companies from 2010 to 2022, adopts the translog production function to measure total factor energy efficiency (TFEE), and investigates the influence of fintech on TFEE and its underlying mechanisms. The result suggests that fintech development considerably promotes TFEE. Mechanism analysis reveals that fintech improves TFEE by promoting enterprise digital transformation, alleviating overcapacity, and strengthening public supervision. Heterogeneity analysis indicates that fintech has a stronger promotion effect on firms’ TFEE in small-scale and non-high-energy consuming industries. Additionally, fintech’s positive impact on TFEE is more pronounced in firms in the eastern region, “two control zones”, areas with weak environmental regulations, non-old industrial base cities, and non-resource-based cities. This paper evaluates the internal mechanism through which fintech contributes to energy efficiency and offers important insights for green development.

Keywords: Fintech; Total factor energy efficiency; Digital transformation; Overcapacity; Public supervision (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10584-025-03994-5

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