Fintech, financial inclusion, mineral resources and environmental quality. An economic advancement perspective from China and Vietnam

Abstract

From a policy perspective, China and Vietnam have made efforts to achieve environmental sustainability. However, it is important to note that environmental issues mostly arise when certain economies heavily rely on fossil fuel to fulfil energy requirements. It is challenging to reduce such reliance because, periodically, these economies become major importers of fossil fuels. Resultantly, the carbon emission rates of China and Vietnam have been increasing over time. The untapped renewable reserves of these economies encourage academia to explore its exploitation in order to produce renewable electricity. The instant growth of fintech, rapid financial inclusion, volatility of mineral resources, and growing economic advancements in China and Vietnam have initiated various dangerous climate issues. Thus, this study investigates the relationship between fintech, financial inclusion, mineral resource rents, economic advancement, and environmental quality in China and Vietnam over the period 2013–2023. Using FEOLS, DOLS, and FMOLS models, it finds that fintech, economic advancement, and mineral resource rents deteriorate the environmental quality of the selected economies, while financial inclusion has a favourable impact on the quality of the climate. The outcomes are supported by the application of the MMQR model. All quantiles show that fintech, economic advancement, and mineral resource rents pollute the environment while financial inclusion enhances climate quality. It is further observed that the extent and magnitude of the relationship increase with the increase of quantile levels. The findings have interesting and useful policy implications.