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Exploring the Nexus between Fintech, natural resources, urbanization, and environment sustainability in China: A QARDL study

Author

Listed:
  • Liu, Kai
  • Mahmoud, Haitham A.
  • Liu, Liqun
  • Halteh, Khaled
  • Arnone, Gioia
  • Shukurullaevich, Nizomjon Khajimuratov
  • Alzoubi, Haitham M.

Abstract

The climate crisis is increasing fast to leave an everlasting impact on China and its operations. China faces the prospect of one region facing extreme flooding while another region grapples with scorching heat and drought. There has been a substantial rise in typhoons and storms. The food security of the nation has taken a hit, and the country has seen its rice production fall by about 8%. This issue is concerning for not only China but the whole world, as a huge number of countries depend on China for food supplies. This research studied the role of Fintech, Natural Resources and Urbanization on environmental sustainability in China by considering the data from 2000 to 2020, using the sophisticated and resilient Qunatile-based ARDL approach. The findings suggest that the use of Fintech can help to achieve green growth while the use of Natural resources can have a detrimental impact on environmental sustainability. Similarly, urbanization leads to increased human activity, which would increase the level of CO2 emissions and result in deforestation, which deteriorates the ecological balance of a country. China is recommended to introduce a carbon tax to ensure that firms find it costly to use unsustainable sources of energy. The funds raised from carbon taxes can be used to finance green projects. Fintech can be used to facilitate the green economy by allowing green loans and green finances to ensure green growth in China.

Suggested Citation

  • Liu, Kai & Mahmoud, Haitham A. & Liu, Liqun & Halteh, Khaled & Arnone, Gioia & Shukurullaevich, Nizomjon Khajimuratov & Alzoubi, Haitham M., 2024. "Exploring the Nexus between Fintech, natural resources, urbanization, and environment sustainability in China: A QARDL study," Resources Policy, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:jrpoli:v:89:y:2024:i:c:s0301420723012680
    DOI: 10.1016/j.resourpol.2023.104557
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    5. Mandella Osei‐Assibey Bonsu & Ying Wang & Princess Rejoice Dankwa Nartey & Margaret Nana Amala, 2025. "Does the Integration of Fintech and Green Finance Enhance Sustainability Performance in the Banking Sector? Information Technology Governance as Moderator," Business Strategy and the Environment, Wiley Blackwell, vol. 34(8), pages 9954-9977, December.
    6. Javed, Aamir & Rapposelli, Agnese & Khan, Feroz & Javed, Asif & Abid, Nabila, 2024. "Do green technology innovation, environmental policy, and the transition to renewable energy matter in times of ecological crises? A step towards ecological sustainability," Technological Forecasting and Social Change, Elsevier, vol. 207(C).
    7. Andlib, Zubaria & Scicchitano, Sergio & Padda, Ihtsham Ul Haq, 2024. "The role of natural resources, fintech, political stability, and social globalization in environmental sustainability: Evidence from the United Kingdom," Resources Policy, Elsevier, vol. 91(C).
    8. Aimin Zhang & Moses Nanyun Nankpan & Bo Zhou & Joseph Ato Forson & Edmund Nana Kwame Nkrumah & Samuel Evergreen Adjavon, 2024. "A COP28 Perspective: Does Chinese Investment and Fintech Help to Achieve the SDGs of African Economies?," Sustainability, MDPI, vol. 16(7), pages 1-14, April.
    9. Shu, Xiaoyang & Usman, Muhammad & Ahmad, Paiman & Irfan, Muhammad, 2024. "Analyzing the asymmetric FinTech services under natural resources, and renewable energy in the future environmental performance: New insights from STIRPAT model framework," Resources Policy, Elsevier, vol. 92(C).
    10. Ahmed, Mansoora & Khaskheli, Asadullah & Raza, Syed Ali & Hassan, M. Kabir, 2024. "Eco-tech fusion: Unraveling the nonparametric causal effects of fintech, natural resources, digital infrastructure, and economic growth on environmental sustainability from a quantile perspective," Resources Policy, Elsevier, vol. 98(C).
    11. Li Li & Jong-Yoon Li, 2024. "Corporate Social Responsibility and Society 5.0: Assessing Consumer Awareness, Loyalty, and Trust toward Socially Responsible Organizations," Sustainability, MDPI, vol. 16(17), pages 1-17, September.
    12. Jiang, Hu & Yang, Yihan & Wang, Yiwen & Chandni, Kehkashan & Wang, Mengzhen, 2024. "Shades of sustainability: Decoding the influence of fintech, natural resources and green ICT on CO2 emissions and green growth in China," Resources Policy, Elsevier, vol. 97(C).
    13. Feng, Shaohuai & Mohd Shafiei, Mohd Wira & Ng, Theam Foo & Ren, Jie, 2024. "Unlocking the potential of natural resources, fintech and fiscal policy for carbon neutrality; evidence from N-11 nations," Resources Policy, Elsevier, vol. 98(C).
    14. Charilaos Mertzanis & Asma Houcine & Athanasios Pavlopoulos & Apostolos Vetsikas & Ilias Kampouris, 2026. "Financial Technology and Environmental Performance: International Evidence," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 31(2), pages 2664-2689, April.
    15. Shah, Wasi Ul Hassan & Sarfraz, Muddassar & Yasmeen, Rizwana, 2025. "Unveiling the impact of natural energy resources depletion on energy industry productivity in top 10 economies: Moderating role of FinTech," Energy, Elsevier, vol. 315(C).
    16. Ul-Durar, Shajara & De Sisto, Marco & Arshed, Noman & Naveed, Shabana & Farooqi, Madiha Rehman, 2024. "FinTech adoption in achieving ecologically sustainable mineral management in Asian OBOR countries – A cross-section and time autoregressive robust analysis," Resources Policy, Elsevier, vol. 91(C).
    17. Muhammad Kashif & Atta Ullah & Saif Ullah & Ningyu Qian, 2026. "Financial technology (FinTech) and green economy synergies for climate resilience and net-zero goals: evidence from G20 countries," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 12(1), pages 1-47, December.

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