Impact of Inclusive Growth, Environmental Policy Incentives, Fintech and Globalization on Environmental Sustainability in G20 Countries

This research investigates the effects of inclusive growth, environmental policy incentives, fintech innovations, and globalization on the environmental sustainability of G20 countries. In light of the growing global concern about carbon emissions from anthropogenic sources, which contribute to severe environmental degradation, the Paris Agreement aims to mitigate these impacts by controlling carbon emissions. This study explores how inclusive growth, fintech, and environmental policies interact to affect ecological footprints in G20 member countries, which represent some of the world’s most influential economies and policymakers. Specifically, inclusive growth is examined for its potential to reduce economic and social inequalities, which, if unmanaged, can exacerbate environmental degradation. In contrast, fintech is analyzed as a double-edged sword—its impact on sustainability depends on its influence on industries and economies, which may either exacerbate or alleviate environmental harm. Globalization’s role is scrutinized for its interactions with the economic, social, and ecological dimensions of sustainability. Our methodology employs advanced econometric models to analyze data from 1990 to 2023, focusing on the relationships between these variables and ecological footprints. Key findings suggest that while fintech can both increase and reduce environmental degradation depending on its application, environmental policy incentives are crucial for promoting sustainable practices and clean technology adoption. Inclusive growth can mitigate environmental harm by addressing inequalities, and globalization’s effects on sustainability depend largely on regulatory frameworks and corporate governance. This study contributes to the literature by highlighting the complex interactions between economic growth models, technological advancements, and environmental policies. Its originality lies in its comprehensive analysis of the G20 economies, shedding light on how inclusive growth, fintech, and environmental policies shape environmental outcomes. The research offers key policy implications, stressing the need for stringent environmental regulations, the promotion of green technologies, and the diversification of economies to reduce reliance on resource rents. The findings emphasize the importance of balancing economic development with environmental sustainability to achieve long-term ecological stability.