IDEAS home Printed from https://ideas.repec.org/a/eee/teinso/v81y2025ics0160791x25000314.html
   My bibliography  Save this article

The impact of circular economy, sustainable infrastructure, and green FinTech on biodiversity in Europe: A holistic approach

Author

Listed:
  • Kakar, Shayan Khan
  • Wang, Jing
  • Arshed, Noman
  • Le Hien, Tran Thi
  • Akhter, Sehrish
  • Abdullahi, Nazir Muhammad

Abstract

As Europe strives for environmental sustainability, integrating a circular economy, sustainable infrastructure, and green FinTech is crucial for enhancing biodiversity conservation. This study investigates the intricate relationship between circular economy, sustainable infrastructure, green FinTech, and European biodiversity conservation. To this end, this study constructs a 24-year panel dataset from 39 European countries. It employs a novel econometric technique called time-specific heterogeneous factor analysis to create indices for a circular economy, sustainable infrastructure, and green FinTech. Additionally, the study employed an advanced econometric Panel Autoregressive Distributed Lag model with Pooled Mean and Fourier specification (PARDL-PMG-Fourier). The findings show that the implementation of green FinTech significantly boosts biodiversity in Europe; the circular economy dampens this impact. The implementation of sustainable infrastructure considerably enhanced the conservation of biodiversity in Europe; similarly, SIN1 shows a significant cyclical or seasonal impact on biodiversity in the short run. This study proposes solid policy recommendations for the European Union, European Commission, regulators, and policymakers. The European Commission and regulators must prioritize the adoption of green FinTech to boost financial market operations and activities, refine circular economy initiatives, and emphasize sustainable infrastructure development projects. Targeted investment is necessary for sustainable resource utilization, recycling, waste reduction, and eco-friendly infrastructure in European projects. By doing so, Europe can effectively boost biodiversity conservation by mitigating cyclical and seasonal risks. These policy implications offer a streamlined framework for achieving economic and environmental sustainability goals in Europe.

Suggested Citation

  • Kakar, Shayan Khan & Wang, Jing & Arshed, Noman & Le Hien, Tran Thi & Akhter, Sehrish & Abdullahi, Nazir Muhammad, 2025. "The impact of circular economy, sustainable infrastructure, and green FinTech on biodiversity in Europe: A holistic approach," Technology in Society, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:teinso:v:81:y:2025:i:c:s0160791x25000314
    DOI: 10.1016/j.techsoc.2025.102841
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0160791X25000314
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techsoc.2025.102841?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Robinson, Peter M. & Velasco, Carlos, 2018. "Inference on trending panel data," Journal of Econometrics, Elsevier, vol. 206(2), pages 282-304.
    2. Maja Wiprächtiger & Melanie Haupt & Andreas Froemelt & Magdalena Klotz & Claudio Beretta & Dominik Osterwalder & Vanessa Burg & Stefanie Hellweg, 2023. "Combining industrial ecology tools to assess potential greenhouse gas reductions of a circular economy: Method development and application to Switzerland," Journal of Industrial Ecology, Yale University, vol. 27(1), pages 254-271, February.
    3. Pesaran, M. Hashem & Smith, Ron, 1995. "The role of theory in econometrics," Journal of Econometrics, Elsevier, vol. 67(1), pages 61-79, May.
    4. Jenny Palm & Daniela Lazoroska & Melanie Valencia & Nancy Bocken & Karolina Södergren, 2024. "A gender perspective on the circular economy: A literature review and research agenda," Journal of Industrial Ecology, Yale University, vol. 28(6), pages 1670-1683, December.
    5. Massimiliano Mazzanti & Roberto Zoboli, 2009. "Municipal Waste Kuznets Curves: Evidence on Socio-Economic Drivers and Policy Effectiveness from the EU," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 44(2), pages 203-230, October.
    6. Möller, Martin & Speck, Thomas & Speck, Olga, 2024. "Sustainability assessments inspired by biological concepts," Technology in Society, Elsevier, vol. 78(C).
    7. Sebastian Kripfganz & Daniel C. Schneider, 2020. "Response Surface Regressions for Critical Value Bounds and Approximate p‐values in Equilibrium Correction Models," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(6), pages 1456-1481, December.
    8. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    9. Su, Tong & Tao, Yanyang & Wang, Jingyi, 2024. "FinTech adoption and the clustered development of rural e-commerce: Evidence from Taobao Village," Pacific-Basin Finance Journal, Elsevier, vol. 85(C).
    10. Suhrab, Muhammad & Chen, Pinglu & Ullah, Atta, 2024. "Digital financial inclusion and income inequality nexus: Can technology innovation and infrastructure development help in achieving sustainable development goals?," Technology in Society, Elsevier, vol. 76(C).
    11. Cainelli, Giulio & D’Amato, Alessio & Mazzanti, Massimiliano, 2020. "Resource efficient eco-innovations for a circular economy: Evidence from EU firms," Research Policy, Elsevier, vol. 49(1).
    12. Reinhilde Veugelers & Cédric Schneider, 2018. "Which IP strategies do young highly innovative firms choose?," Small Business Economics, Springer, vol. 50(1), pages 113-129, January.
    13. Tiberio Daddi & Maria Rosa De Giacomo & Marco Frey & Fabio Iraldo, 2018. "Analysing the causes of environmental management and audit scheme (EMAS) decrease in Europe," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 61(13), pages 2358-2377, November.
    14. Kirchherr, Julian & Reike, Denise & Hekkert, Marko, 2017. "Conceptualizing the circular economy: An analysis of 114 definitions," Resources, Conservation & Recycling, Elsevier, vol. 127(C), pages 221-232.
    15. Croutzet, Alexandre & Dabbous, Amal, 2021. "Do FinTech trigger renewable energy use? Evidence from OECD countries," Renewable Energy, Elsevier, vol. 179(C), pages 1608-1617.
    16. Laibach, Natalie & Börner, Jan & Bröring, Stefanie, 2019. "Exploring the future of the bioeconomy: An expert-based scoping study examining key enabling technology fields with potential to foster the transition toward a bio-based economy," Technology in Society, Elsevier, vol. 58(C).
    17. Fernando J. Díaz López & Massimiliano Mazzanti & Roberto Zoboli, 2023. "Towards a sustainable, circular, innovative and socially fair economy: an introduction," Chapters, in: Fernando J. Díaz López & Massimiliano Mazzanti & Roberto Zoboli (ed.), Handbook on Innovation, Society and the Environment, chapter 1, pages 2-22, Edward Elgar Publishing.
    18. Ul-Durar, Shajara & Bakkar, Yassine & Arshed, Noman & Naveed, Shabana & Zhang, Beifan, 2025. "FinTech and economic readiness: Institutional navigation amid climate risks," Research in International Business and Finance, Elsevier, vol. 73(PA).
    19. Luo, Sumei & Sun, Yongkun & Yang, Fan & Zhou, Guangyou, 2022. "Does fintech innovation promote enterprise transformation? Evidence from China," Technology in Society, Elsevier, vol. 68(C).
    20. Viktor Koval & I Wayan Edi Arsawan & Ni Putu Santi Suryantini & Serhii Kovbasenko & Nadiia Fisunenko & Tetiana Aloshyna, 2022. "Circular Economy and Sustainability-Oriented Innovation: Conceptual Framework and Energy Future Avenue," Energies, MDPI, vol. 16(1), pages 1-19, December.
    21. Hong Nham, Nguyen Thi & Ha, Le Thanh, 2022. "Making the circular economy digital or the digital economy circular? Empirical evidence from the European region," Technology in Society, Elsevier, vol. 70(C).
    22. Phemelo Tamasiga & Helen Onyeaka & El houssin Ouassou, 2022. "Unlocking the Green Economy in African Countries: An Integrated Framework of FinTech as an Enabler of the Transition to Sustainability," Energies, MDPI, vol. 15(22), pages 1-28, November.
    23. T. E. Graedel & Julian Allwood & Jean‐Pierre Birat & Matthias Buchert & Christian Hagelüken & Barbara K. Reck & Scott F. Sibley & Guido Sonnemann, 2011. "What Do We Know About Metal Recycling Rates?," Journal of Industrial Ecology, Yale University, vol. 15(3), pages 355-366, June.
    24. Bobker, Michael F., 2006. "Infrastructure conundrums: Investment and urban sustainability," Technology in Society, Elsevier, vol. 28(1), pages 125-135.
    25. Zhou, Bo & Wang, Qunwei, 2024. "FinTech matters in sustainable finance: Does it redistribute the supply of financial services?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 91(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shah, Sayed Kifayat & Yuan, Jingbo & Tajeddini, Kayhan & Gamage, Thilini Chathurika & Liu, Mingxia, 2025. "Exploring the nexus of institutional factors and regulatory focus in driving platform-based servitization and circular economy adoption," Technology in Society, Elsevier, vol. 81(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xu, Haitao & Yang, Chengying & Li, Xuetao & Liu, Ruiyu & Zhang, Yonghong, 2024. "How do fintech, digitalization, green technologies influence sustainable environment in CIVETS nations? An evidence from CUP FM and CUP BC approaches," Resources Policy, Elsevier, vol. 92(C).
    2. Nguyen, Thi Hao & Deng, Hongbing & Abbas, Zainab Zahra & Lam, Thi Thoa & Abbas, Hussain Raza, 2024. "The effect of natural capital, regional development, FDI, and natural resource rent on environmental performance: The Mediating role of green innovation," Resources Policy, Elsevier, vol. 91(C).
    3. 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).
    4. Tiwari, Sunil, 2024. "Impact of Fintech on natural resources management: How financial impacts shape the association?," Resources Policy, Elsevier, vol. 90(C).
    5. Neves, Sónia Almeida & Marques, António Cardoso & de Sá Lopes, Leonardo Batista, 2024. "Is environmental regulation keeping e-waste under control? Evidence from e-waste exports in the European Union," Ecological Economics, Elsevier, vol. 216(C).
    6. Azreen Benazir Abdullah Ahmed & Sakib Amin & Charles Harvie & Rabindra Nepal, 2021. "The Nexus Between Energy and Trade in South Asia: A Panel Analysis," Economic Papers, The Economic Society of Australia, vol. 40(2), pages 134-151, June.
    7. Caroline Samberger & Sanaz Imen & Katerina Messologitis & Arthur Umble & Joseph G. Jacangelo, 2024. "Assessing circularity of wastewater treatment systems: A critical review of indicators," Journal of Industrial Ecology, Yale University, vol. 28(2), pages 262-276, April.
    8. Huntington, Hillard & Liddle, Brantley, 2022. "How energy prices shape OECD economic growth: Panel evidence from multiple decades," Energy Economics, Elsevier, vol. 111(C).
    9. Castro-Lopez, Adrian & Iglesias, Victor & Santos-Vijande, María Leticia, 2023. "Organizational capabilities and institutional pressures in the adoption of circular economy," Journal of Business Research, Elsevier, vol. 161(C).
    10. Buyukyazici, Duygu & Quatraro, Francesco, 2025. "The skill requirements of the circular economy," Ecological Economics, Elsevier, vol. 232(C).
    11. Triguero, A. & Córcoles, D., 2025. "Leveraging eco-innovation and market knowledge for a circular economy transition: Insights from Spanish manufacturing firms," Technological Forecasting and Social Change, Elsevier, vol. 216(C).
    12. Viviana D'Angelo & Francesco Cappa & Enzo Peruffo, 2023. "Walking the tightrope: Circular economy breadth and firm economic performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 1869-1882, July.
    13. Fedoua Kasmi & Ferney Osorio & Laurent Dupont & Brunelle Marche & Mauricio Camargo, 2022. "Innovation Spaces as Drivers of Eco-innovations Supporting the Circular Economy: A Systematic Literature Review," Post-Print hal-03590438, HAL.
    14. Rodríguez-Espíndola, Oscar & Cuevas-Romo, Ana & Chowdhury, Soumyadeb & Díaz-Acevedo, Natalie & Albores, Pavel & Despoudi, Stella & Malesios, Chrisovalantis & Dey, Prasanta, 2022. "The role of circular economy principles and sustainable-oriented innovation to enhance social, economic and environmental performance: Evidence from Mexican SMEs," International Journal of Production Economics, Elsevier, vol. 248(C).
    15. Natacha Klein & Tomás B. Ramos & Pauline Deutz, 2022. "Advancing the Circular Economy in Public Sector Organisations: Employees’ Perspectives on Practices," Circular Economy and Sustainability, Springer, vol. 2(2), pages 759-781, June.
    16. Awais, Minahil & Afzal, Ayesha & Firdousi, Saba & Hasnaoui, Amir, 2023. "Is fintech the new path to sustainable resource utilisation and economic development?," Resources Policy, Elsevier, vol. 81(C).
    17. Wang, Jianxin & Zhu, Guohua & Chang, Tin-Chang, 2024. "Unveiling the relationship between institutional quality, fintech, financial inclusion, human capital development and mineral resource abundance. An Asian perspective," Resources Policy, Elsevier, vol. 89(C).
    18. Patrick Grüning & Justina Banionienė & Lina Dagilienė & Michael Donadelli & Marcus Jüppner & Renatas Kizys & Kai Lessmann, 2021. "The Quadrilemma of a Small Open Circular Economy Through a Prism of the 9R Strategies," Bank of Lithuania Working Paper Series 96, Bank of Lithuania.
    19. Meleddu, Marta & Vecco, Marilena & Mazzanti, Massimiliano, 2024. "The Role of Voluntary Environmental Policies Towards Achieving Circularity," Ecological Economics, Elsevier, vol. 219(C).
    20. Mehmet Balcilar & Evrim Toren, 2021. "The Time-Varying Effect of Asset Prices on Turkey’s Circular Economy," Sustainability, MDPI, vol. 13(22), pages 1-16, November.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:teinso:v:81:y:2025:i:c:s0160791x25000314. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/technology-in-society .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.