The role of Fintech, natural resources, and renewable energy consumption in Shaping environmental sustainability in China: A NARDL perspective

Abstract

China emits a third of global pollution. This results in severe environmental damage across the world. There is a resounding need to develop means to maintain the sensational economic progress of the country and achieve environmental sustainability too. Despite the efforts from China to transition away from fossil fuels, most of the energy demand is still met using coal. China stands to be one of the largest producers and users of coal in the world. All these factors are a severe barrier in the country's quest to become carbon neutral by 2060. This research studied the role of Fintech, Natural resources and Renewable Energy consumption in achieving environmental sustainability. Fintech can help digitalize the financial industry and play a vital role in reducing CO2 emissions from the financial industry. Furthermore, it can be an effective means to promote the growth of green finance and green investment. The increased use of natural resources can be detrimental to the environment. Furthermore, the transition towards renewable energy consumption can reduce emissions and help to develop a sustainable environment in China. The study recommends using a carbon tax to curb CO2 emissions and use the advances of Fintech to promote investment in the green infrastructure of the economy. Using natural resources should be discouraged with increasing taxes, while renewable energy use should be encouraged with various subsidies.