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Analyzing the asymmetric FinTech services under natural resources, and renewable energy in the future environmental performance: New insights from STIRPAT model framework

Author

Listed:
  • Shu, Xiaoyang
  • Usman, Muhammad
  • Ahmad, Paiman
  • Irfan, Muhammad

Abstract

Increasing environmental degradation and energy crises have pushed economies to adopt and impliment more sustainable technologies. In this way, financial technologies (FinTech) and natural resources have played a significant role in diminishing environmental pollution by integrating economic growth and urbanization. Both of these factors can boost renewable energy sources and diminish environmental pollution. To achieve this goal, this study estimates the short run, and long run relationship between FinTech services, natural resources, and greenhouse gasses (GHG) emissions in China from 2010Q1–2022Q4, while applying economic growth, renewable energy use, and urbanization as control variables using novel dynamic autoregressive distributive lag (DARDL) simulations. This study discovers a novel FinTech development index through principal component analysis (PCA) comprising four imperative factors that signify the FinTech development and employes a reliable and robust environmental framework recognized as the Stochastic Impacts by Regression on Population, Affluence, and Technology (STIRPAT) model. The estimated findings reveal that FinTech development and renewable energy significantly reduce GHG emissions in the long run. At the same time, renewable energy consumption reduces environmental pollution in the short run. Conversely, natural resources and urbanization significantly boost GHG emissions in the long run, and short run. Moreover, economic growth increases GHG emissions in the long run but adversely influences environmental degradation in the short run. Finally, this study suggests that China implements sustainable progress tactics to accomplish a harmonious equilibrium between FinTech services, natural resources, energy use, economic growth, and ecological fortification, efficiently addressing the encounters of ecological deprivation, encouraging balance FinTech services and natural resource management, and achieving Sustainable Development Goals (SDGs) targets.

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  • 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).
    • Handle: RePEc:eee:jrpoli:v:92:y:2024:i:c:s0301420724003519
    DOI: 10.1016/j.resourpol.2024.104984
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    4. Shah, Waheed Ullah & Younis, Ijaz & Missaoui, Ibtissem & Liu, Xiyu, 2025. "Environmental transitions effect of renewable energy and fintech markets on Europe's real estate stock market," Renewable Energy, Elsevier, vol. 243(C).
    5. Usman, Muhammad & Simionescu, Mihaela & Radulescu, Magdalena & Balsalobre-Lorente, Daniel, 2024. "Breaking barriers, cultivating sustainability: Discovering the trifecta influence of digitalization, natural resources, and globalization on eco-innovations across 27 European nations," Resources Policy, Elsevier, vol. 94(C).
    6. Umut Uzar & Kemal Eyuboglu, 2025. "The influence of fintech on ecological footprint in rapidly globalizing India: can fintech drive environmental change?," Economic Change and Restructuring, Springer, vol. 58(5), pages 1-28, October.
    7. Qiong Deng & Muhammad Usman & Muhammad Irfan & Mohammad Haseeb, 2025. "The role of financial inclusion and tourism in tackling environmental challenges of industrialization and energy consumption: Redesigning Sustainable Development Goals policies," Natural Resources Forum, Blackwell Publishing, vol. 49(3), pages 3112-3139, August.
    8. Zhiyuan Gao & Mengwen Hua & Ziying Jia & Lianqing Li & Yu Hao, 2025. "Intelligent Pathway: Artificial Intelligence and the Path to Energy Sustainability," Growth and Change, Wiley Blackwell, vol. 56(4), December.
    9. Peiji Yu & Omar Akram Abusamra & Muhammad Usman & Muhammad Sohail Amjad Makhdum, 2025. "Leveraging Technological Innovation, Renewable Energy, and Forest Management to Overcome Barriers and Achieve Sustainable Development Goal 13 (Climate Action) in G‐7 Countries," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(6), pages 8821-8839, December.
    10. Behera, Puspanjali & Sethi, Narayan & Dash, Devi Prasad & Usman, Muhammad & Sahu, Pritish Kumar, 2025. "Pathways to achieve carbon neutrality in emerging economies: Catalyzing the role of renewable energy, green growth, ICT, and political risk," Renewable Energy, Elsevier, vol. 243(C).
    11. 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.
    12. Umut Uzar & Ömer Faruk Kömürcüoğlu & Elif Duygu Kömürcüoğlu, 2026. "The Impact of FinTech on Environmental Sustainability: Empirical Evidence Based on a Novel FinTech Index," Business Strategy and the Environment, Wiley Blackwell, vol. 35(5), pages 7311-7331, July.
    13. Yang, Xiaodong & Razzaq, Asif, 2024. "Does Fintech influence green utilization efficiency of mineral resources? Evidence from China's regional data," Resources Policy, Elsevier, vol. 99(C).

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