Beyond Averages: FinTech, Digitalization, and the Heterogeneous Drivers of Green Finance in Europe

As countries accelerate their transition toward low-carbon economies, understanding the drivers of green finance is essential for shaping effective sustainability policies. This study investigates how FinTech development, digitalization, financial access, and structural factors influence public renewable energy investment—a measurable dimension of green finance—across 29 European countries over 2000–2022, using the Method of Moments Quantile Regression (MMQR). Results reveal strong distributional heterogeneity: FinTech consistently promotes green investment across all quantiles, digital infrastructure amplifies this effect in advanced regimes, and financial access is most binding at lower quantiles. Natural resource dependence exerts a persistent resource curse constraint that intensifies at higher quantiles. Three robustness strategies—2SLS-IV and quantile fixed effects QFE confirm a causal positive FinTech effect. Quantile-specific policy implications are derived: early-stage green investors should prioritize financial access and digital infrastructure, while advanced economies should deepen FinTech adoption and address resource-dependence constraints.