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The role of fintech, natural resources, and energy use in shaping environmental sustainability in China: A QARDL perspective

Author

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  • Yang, Haili
  • Zou, Jiantao
  • Luo, Yueyue
  • Wang, Yuan
  • Qiu, Yunhua
  • Guo, Hao

Abstract

China has seen an increasing level of influence in the world economy. The economic success of the country has been phenomenal over the years. One of the biggest costs of economic growth in China has been the substantial rise in emission levels. China is one of the largest polluters in the world. The country is also facing the wrath of the worsening environmental crisis, with one region facing extreme flooding while another region is suffering from drought. Due to these chaotic environmental conditions, the agriculture industry has suffered hard, and there are increasing concerns over the food security of the country. This study focused on identifying the relationship between Fintech (FNT), Natural Resources (NTR) and usage of Energy (ENR) on Environmental Sustainability (ENS) using the “Quantile Autoregressive Distributed Lag” (QARDL) approach in China. The findings of the study suggest that the use of FNT can promote green finance and help promote the green growth of an economy. The increased use of NTR can have a detrimental impact on the ENS, and China must reduce the use of NTR in their operations. Furthermore, ENR is often considered the root cause of environmental problems in a country like China. The recommendation of the study includes moving away from fossil fuels through the use of renewable energy. The transition can be facilitated using carbon tax and environmental subsidies. The government must adopt the principles of a sustainable supply chain to get the best results for the future as far as ENS is concerned.

Suggested Citation

  • Yang, Haili & Zou, Jiantao & Luo, Yueyue & Wang, Yuan & Qiu, Yunhua & Guo, Hao, 2024. "The role of fintech, natural resources, and energy use in shaping environmental sustainability in China: A QARDL perspective," Resources Policy, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:jrpoli:v:89:y:2024:i:c:s0301420724000175
    DOI: 10.1016/j.resourpol.2024.104650
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