Exploring the dynamics: Biodiversity impacts of natural resource extraction with moderating influence of FinTech for sustainable practices in resource-rich nations

The relationship between biodiversity and natural resource extraction is a complex interplay where resource extraction can positively or negatively impact the diversity of life in ecosystems, depending on the specific context and management practices. Resource rich countries are facing this challenge to balance the growing economy natural resource needs against the richness of natural habitat. So, the study objective is to validate the non-linear impact of total natural resource extraction on biodiversity. For this purpose, 19 resource-rich countries have been considered from 2000 to 2021. A Common Correlated Mean Group (CCMG) specification is adopted in quantile regression to address cross-sectional dependence and non-normality of data. This model is specifically utilized to control for the spillover effects of natural resource markets across resource rich countries. According to the estimated results, an inverted U-shaped relationship is validated between natural resource extraction and biodiversity. Interestingly, the incorporation of financial technology encourages biodiversity. Further, the moderating effect of fintech evolves sustainable practices in natural resource extraction and promotes biodiversity. Energy intensity and population density as controlling factors of the model are damaging and improving biodiversity, respectively. Considering the inverted U-shaped relationship, policymakers are urged to design adaptive regulations that incentivize sustainable resource extraction practices. Using financial technology can play a vital role in promoting innovation and transparency, making it a critical strategy to consider.