In the context of a global water crisis, enhancing water productivity is becoming increasingly crucial. While previous research has predominantly addressed technical and policy aspects of water management, the role of fintech in improving water productivity has not been sufficiently explored. This research investigates the impact of fintech on water productivity, considering the moderating effect of education level. Using panel data from new BRICS countries spanning 2011 to 2021, we employ a partially linear functional model to analyze how fintech influences water productivity and assess how education levels moderate this relationship. Our findings reveal that: (i) Fintech holds significant potential for improving water productivity; (ii) The effect of fintech on water production varies with the education level; (iii) There is considerable spatial variation in how education level affects the impact of fintech, with a more pronounced effect observed in countries with higher education levels. Specifically, the impact of fintech on water productivity becomes substantially more significant when the education level index exceeds 2.3. These results remain robust across various tests. Based on these insights, the paper proposes policy recommendations to enhance water productivity through the integration of fintech and education improvements.
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| http://dx.doi.org/10.1016/j.jenvman.2024.123405 | DOI Listing |
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