The role of fintech, mineral resource abundance, green energy and financial inclusion on ecological footprint in E7 countries: New insight from panel nonlinear ARDL cointegration approach

Abstract

This main objective of the study is to examine the impact of green energy, financial inclusion, fintech, and mineral resource abundance on the ecological footprints (EFP) of the top seven emerging economies. The research mainly explores the role of mineral resource abundance and fintech advancements in promoting environmental sustainability, while also analyzing the benefits of green energy in reducing ecological footprints in E7 countries. This research employed the panel Nonlinear ARDL approach to gain a deeper understanding of positive and negative variations of the data of E7 countries from 2000 to 2020.The study employed the robust and second-generation panel unit root test to enhance the understanding of the estimated model. There are many benefits to using these most robust second-generation techniques; such as they possess an ability to recognize patterns and correlations in panel data. In addition, these second-generation tests provide enhanced estimators in comparison to first-generation methods. To ensure utmost precision and to ensure reliability and validity of the data analysis, the authors have employed process underwent comprehensive testing with both CIPS and CADF. Furthermore, the HASIO test is used to evaluate uniformity in data. The findings of the study reveal that green energy has a significant and complex relationship with the ecological footprint, indicating that investments in green technologies can have immediate beneficial effects on environmental quality, albeit with varying impacts over time. Financial technology emerges as a pivotal factor with both positive and negative shocks displaying a substantial influence on the ecological footprint, suggesting that technological advancements in the financial sector can lead to sustainable economic practices that are crucial for environmental health. The results of the study imply that strategic investments in green energy and innovative financial technologies are essential for achieving the SDGS, particularly SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action). The results of the study further imply that these investments not only reduce the ecological footprint but also promote sustainable economic growth in emerging economies, demonstrating the interconnectedness of economic advancement and environmental stewardship.