Unraveling the Spatial Effects of Fintech on Urban Energy Efficiency in China

Improving urban energy efficiency is essential for addressing energy shortages and environmental pollution, thereby facilitating a win–win outcome for both the economy and the environment. As an emerging financial force, fintech is essential for facilitating energy saving, reducing emissions, and advancing modernization. Using panel data of 278 cities in China from 2011 to 2022 to construct a spatial Durbin model for investigating how fintech affects energy efficiency, the following results were found: (1) Energy efficiency shows positive spatial dependence features, and the enhancement of energy efficiency in this location positively influences the energy efficiency of spatially connected regions. (2) Fintech improves local energy efficiency and has notable positive geographical spillover effects on surrounding regions’ energy efficiency. (3) Three mediating pathways are identified: upgrading industrial structure, promoting green innovation, and driving green finance evolution. (4) The regulatory mechanism suggests that environmental regulations can help strengthen fintech’s geographical spillover benefits for the energy efficiency of neighboring areas. The impact of fintech on energy efficiency exhibits heterogeneity due to differences in urban resources and digital infrastructure. These insights offer important theoretical contributions and practical significance for policy-makers in advancing fintech development and urban energy efficiency.