Integrating fintech in natural resource management: Assessing the EKC hypothesis for sustainable development in E7 countries

Abstract

The main objective of the study is to examine the impact of green finance, fintech and mineral resources on environmental sustainability is of great importance in the E7 nations namely Brazil, China, India, Indonesia, Mexico, Russia, and Turkey. The E7 countries are selected as these countries are mineral rich countries and account for a major portion of global mineral export. The data of twenty-five years spanning from 1998 to 2022 is used for the analysis. The study has employed the three measures namely carbon dioxide emissions, ecological footprint, green economic growth to conceptualize the sustainable growth. For the data analysis the study has employed the nonlinear auto-regressive distributed lag (NL-ARDL) model. The results of the study highlights that encouraging and promoting the green finance, and fintech in E7 countries promote sustainable growth, by reducing CO2 emission, improving economic growth, and reducing ecological footprints. The results of the study are in line with the proposition of EKC hypothesis. Moreover, the results of the study also highlight that mineral resource abundance have significant impact of environment sustainability. The study suggests that E7 countries should establish dedicated funds or subsidies to help businesses transition to green technologies and practices, especially for small and medium-sized enterprises. Fintech is seen as a transformative tool in advancing environmental sustainability by improving financial service efficiency and offering new green investment platforms in E7 countries. This could help mitigate initial costs associated with green technology adoption.