Frontiers in Energy Research (Nov 2023)
How FinTech affects total factor energy efficiency? Evidence from Chinese cities
Abstract
The advancement of Financial Technology (FinTech) is crucial for government entities, the National Grid, and various energy corporations to facilitate the transition towards sustainable and green production methods. This study investigates the relationship between FinTech and Total Factor Energy Efficiency (TFEE) using data from a selected sample of 254 city groups in China. We examine how the development of FinTech impacts TFEE from both non-spatial and spatial perspectives. The results from the non-spatial panel model indicate that FinTech development has a significant positive impact on TFEE. Comparative studies were conducted using fixed effects (FE), feasible generalized least squares (FGLS) models, and system generalized method of moments (GMM) models, and the main findings remained consistent, confirming the robustness of our conclusions. Spatial autocorrelation results reveal a significant positive spatial spillover effect on TFEE. Both the spatial Durbin model and the dynamic spatial Durbin model demonstrate that FinTech also has a significant positive impact on TFEE, and this effect increases over time. These conclusions remain robust even after considering various spatial weight matrices and alternative methods for calculating TFEE. Additionally, we discovered that the digital economy plays a vital role in strengthening the relationship between FinTech and TFEE. Heterogeneity analysis indicates that, compared to cities without resource-based economies, FinTech development in growing resource-based cities has a more substantial impact on TFEE.
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