How environmental protection activities and industrial revolution contributes in the nexus of energy security and environmental sustainability?

Abstract

The booming fintech industry seeks to revolutionize traditional financial practices, introducing new business models and innovative applications to enhance financial services. However, the widespread adoption of fintech may lead to increased energy consumption, posing environmental challenges. Comprehensive research is essential to understand the impact of fintech on economies, financial culture, and the environment, facilitating informed decision-making to foster sustainable growth in the sector. Therefore, the present research will explore how the fintech industry, green finance, and energy efficiency play their role in energy security and the achievement of a sustainable environment. The current study used data from 2000 to 2020 by employing Fourier autoregressive distributed lag (ARDL), fully modified least squares (FMOLS), and dynamic ordinary least squares (DOLS) econometric techniques to explore how the industrial revolution, environmental protection activities, and energy efficiency affect energy security and the environment across European countries. According to the findings, the fintech sector encourages the use of eco-friendly and energy-efficient technology, which assists in lowering carbon emissions and boosting energy security and efficiency. The outcomes of energy efficiency show a negative relationship with carbon emissions but a considerably positive relationship with energy security. This research shows that green financing has a favorable influence on energy security, and in European nations, green financing drives the majority of investments made for environmental conservation.