Empirical evidence of fintech and green environment: Using the green finance as a mediating variable

Abstract

In current study, we examine the influence of fintech innovations on environment, by using multiple angles. However, we formulate the advanced green environmental index by utilizing the environmental, economic, resources and financial indicators. On contrary to the previous studies, which have emphasized on the environmental indicators, economic indicators and resources indicators, the current study is the pioneer to incorporate the financial indicators to form a green environmental index. In recent years, the progress in fintech has emerged a significant source to decline the energy which turns to enhance the environmental quality. Fintech has confirmed the significant and positive relationship with green environmental index. The three subcategories of fintech, financial breadth, financial depth, and financial digitalization, have positive influence to promote the green environmental index. Heterogeneity test has reported the strong impact of fintech for three Chinese regions; Northeast, East and Southwest. In case of green financing mediation, fintech has reported the partial mediation of green credit and green investment to influence the green environmental index. The findings of the study have multiple policy suggestions, such as, promote the fintech innovation, motivate the creditors and investors to choose the green financing etc.