An integrated perspective on fintech, green innovation and natural resource rent: Evidence from Asia

Abstract

Countries with abundant natural resources are speculated to have higher carbon discharge levels. Thus, it can be assumed that such countries are likely to face carbon curse issues which come from natural resource consumption. Against this backdrop, identifying potential and effective de-cursing mechanisms is an important task for these nations. Thus, this study is motivated to examine the role of fintech, green innovation, financial and economic development, and natural resources in the per capita CO2 emissions of resource-rich economies. Major Asian economies are chosen as the study sample, and only data from the COVID-19 pandemic period is considered. Method of moments quantile regression (MMQR) is employed to examine the relationships and reveals that financial development and green innovation are both positive indicators of enhanced climate quality at all quantiles. However, natural resource rents and fintech have drastic effects on the sustainable environment as both constructs are responsible for higher emissions. This implies that, in order to build environmentally friendly systems, the innovation levels of industries should be improved, which is possible when green technology innovation is introduced. Green and renewable energy investment must increase to generate funds for low carbon environmental production.