Pathways to environmental sustainability: Do fintech, natural resources, and environmental patents matter in E−7 nations?

Abstract

Growing concerns about climate change and environmental sustainability have heightened the global urgency to identify and implement effective strategies for mitigating environmental impacts. In this context, financial technology (Fintech), combined with sustainable natural resource management, offers significant opportunities to address environmental risks. This study examines the roles of Fintech, natural resource management, environmental patents, and economic growth in advancing environmental sustainability in E7 countries from 2000Q1 to 2020Q4, using the Method of Moments Quantile Regression (MMQR) for analysis. The findings reveal that natural resources have a positive and significant effect on the ecological footprint across all quantiles, with a slight reduction at mid-quantiles. Environmental patents are associated with a negative impact on the ecological footprint, suggesting that technological advancements contribute to reducing environmental degradation, particularly around the median quantile. The negative coefficients for GDP indicate that economic growth may contribute to reducing the ecological footprint. Fintech consistently exhibits negative coefficients across all quantiles, with a stronger impact at higher quantiles, underscoring its effectiveness in reducing the ecological footprint in E7 nations. The study recommends that policymakers incentivize Fintech companies to prioritize green financing solutions, such as carbon credit trading platforms and investments in renewable energy, to enhance environmental sustainability efforts.