Can financial and economic means accelerate renewable energy growth in the climate change era? The case of China

In the context of climate change, innovative financing solutions and the rapid development of financial technology (fintech) offer great potential for the growth of renewable energy. Based on panel data from 30 provinces in China, this paper explores the impact of fintech on renewable energy growth by employing the instrumental variablegeneralized method of moments (IV-GMM). We also pay attention to the nexus between fintech and renewable energy growth at different quantiles. This paper also explores the moderating role of the digital economy and the mediating role of green technological innovation. The main results indicate that (1) fintech positively affects renewable energy growth in China; (2) the positive effect between fintech and renewable energy is stronger in provinces with lower levels of renewable energy growth; (3) the digital economy, on the one hand, can significantly accelerate renewable energy growth; on the other hand, under the help of the digital economy, fintech can play a more effective role in increasing renewable energy growth; and (4) fintech indirectly promotes renewable energy growth by increasing the level of green technology innovation. The findings provide meaningful references for governments and policymakers and encourage the accelerated adoption of fintech in the sustainable energy sectors. (c) 2023 Economic Society of Australia, Queensland. Published by Elsevier B.V. All rights reserved.

Automated summary

In the context of climate change, innovative financing solutions and the rapid development of financial technology (fintech) offer great potential for the growth of renewable energy. This paper examines the impact of fintech on renewable energy growth in China using panel data and instrumental variable estimation. The findings suggest that fintech has a positive effect on renewable energy growth, especially in provinces with lower levels of renewable energy growth. The digital economy plays a moderating role and green technological innovation acts as a mediator in this relationship. These results have important implications for governments and policymakers in promoting sustainable energy development.