Deepening Clean Energy Transition and Decarbonization Under Fintech Reform Pilot Zones: Evidence from Chinese Renewable Energy Firms

Despite rapid global growth in renewable energy capacity, fossil fuels still dominate the energy mix. Renewable energy firms often face limited access to bank credit because their asset-light, technology-intensive business models provide little collateral, constraining investment in clean energy deployment. This study examines whether China’s Fintech Reform Pilot Zones, which introduce digital technology-based credit evaluation, can alleviate these financing constraints and accelerate corporate energy transition. Using a staggered difference-in-differences design on a panel of Chinese listed renewable energy firms, we find that pilot zone designation significantly improves firms’ access to external financing and increases Energy Transition Depth (ETD) by approximately 3.6 percentage points, equivalent to 24.7% of the sample mean, indicating economically meaningful improvements in corporate energy transition. The strongest effects are observed in solar photovoltaic deployment and battery storage penetration. Greater energy transition is also associated with lower firm-level greenhouse gas emission intensity, suggesting potential environmental benefits. Mediation analysis identifies two complementary pathways: an innovation-accumulation route which advances renewable energy technology, and a capital-deployment route which supports renewable energy capacity expansion by relaxing firms’ general financing constraints. Regions with more developed renewable energy industries also exhibit lower fossil energy consumption and carbon emissions, suggesting potential regional spillover effects. These findings demonstrate that Fintech-enabled financial reform can facilitate renewable energy deployment and support broader energy transition and decarbonization, with important implications for emerging economies.