Impact of mineral resource rents and fin-tech on green growth: Exploring the mediating role of environmental governance in developed economies

Abstract

Natural resource abundance is commonly viewed as a positive sign for any nation. However, even if it aids economic growth, depending too much on a limited supply of natural resources is generally frowned upon. Specifically, continuous use of natural resources may affect the environment and green productivity. Hence, this study explored the impact of mineral resource rents (MRRR) and financial technologies (Fin-tech) on green growth (GG) in selected developed economies from 1990 to 2022. The study has also documented the mediating role of environmental governance to measure the direct, indirect, and total impact of MRRR on GG. By employing the path analysis model, we have found that a resource curse is present in G-7 economies, but the impact is reduced with better environmental governance. Besides, Fin-tech is found to be affecting GG negatively. We recommend that policymakers adopt sound and practical environmental governance policies to reduce the negative impact of MRRR on environmental sustainability in the region. Also, policies to revolutionize Fin-tech are necessary to make these technologies more environmentally friendly.