With the re-launch of China Certified Emission Reduction (CCER), the carbon market has embraced a dual-driven approach, and the significance of FinTech in this context is growing. The discussion regarding the impact of FinTech on carbon emission reduction carries significant academic and practical importance. It not only enhances our understanding of its operational mechanisms within the carbon market, but also highlights its stimulatory role in carbon emission reduction. Using panel data from Chinese prefecture-level cities from 2011 to 2023, this study explores FinTech’s role in carbon emission reduction and its moderation effect on carbon market policies. Results indicate that FinTech promote carbon emission reduction across regions, validated by endogeneity and robustness tests. It facilitates urban carbon emission reduction through green technology innovation, industrial upgrading, and enhancing green total factor productivity. Moreover, FinTech positively moderates the carbon emission reduction effects of carbon market policies. Therefore, the study puts forward three policy recommendations for governmental consideration, to promote the development of FinTech and strengthen the construction of the carbon market to achieve the “dual carbon” goal.
Xu et al. (Wed,) studied this question.