Dependence Of Cross Section Research Articles

Unraveling the environmental Kuznets curve in IGAD countries: interplay between ecological footprint, economic growth, renewable energy, and globalization

Abstract Climate change has become a global phenomenon; hence, mitigating environmental pollution and degradation are crucial for addressing climate change consequences. A paradigm shift from fossil fuel to clean energy sources is suggested to reduce environmental pollution without compromising economic growth. This study assesses the validity of the environmental Kuznets curve (EKC) hypothesis by incorporating the impacts of renewable energy, population density, and globalization on ecological footprint in IGAD member nations. A battery of econometric techniques, such as Pedroni, Kao, and Johansen Fisher cointegration methods, heterogeneous panel methods, and Dumitrescu-Hurlin panel causality tests are utilized. Before the formal analysis, we performed a cross-sectional dependence test; and it was observed that the data are cross-sectional dependent. Hence, the second-generation unit root test is utilized which confirms that all the interested variables are stationary at the first difference I (1). The empirical results of cointegration methods indicate that explanatory variables are cointegrated into the ecological footprint in the long run. Moreover, the PMG – which provides consistent results as evidenced by the Hausman test – underscored that globalization, population density, and renewable energy mitigate ecological footprint in the long run even though renewable energy is insignificant. An increase in economic growth is associated with a deterioration of environmental pollution, while squared growth is linked to a reduction in pollution. This evidence supports the existence of the EKC theory, which posits an inverted U-shaped relationship between economic expansion and ecological footprint. Besides, unidirectional causalities are detected from ecological footprint to population density, renewable energy, economic growth, and squared economic growth but not the other way around. In light of the empirical results, several policy recommendations are proposed.

The Impact of Exchange Rate and Inflation on Economic Growth: Empirical Evidence from the MENA region using Panel Data Analysis

The volatility of exchange rates and inflation represents a critical challenge to economic stability in the MENA (Middle East and North Africa) region. This study delves into the complex relationship between these macroeconomic factors and economic growth from 2000 to 2023, with a focus on providing actionable insights for policymakers. Using a panel dataset of nine MENA countries, the research employs Feasible Generalized Least Squares (FGLS) to address issues of heteroskedasticity, serial correlation, and cross-sectional dependence, offering a robust analysis of the dynamic interactions. The findings reveal that inflation significantly hampers GDP growth, confirming that rising inflation undermines investment and creates economic uncertainty. In contrast, a more competitive Real Effective Exchange Rate (REER) fosters economic growth by improving export competitiveness, especially in non-oil sectors. Interestingly, the analysis also highlights that imports have a positive effect on GDP growth, emphasizing their role in supporting domestic production through the provision of essential goods and technologies. This study calls for targeted policy measures in the MENA region to stabilize inflation, enhance exchange rate competitiveness, and diversify exports. Such strategies are essential for sustaining economic growth and ensuring long-term economic stability.

Early formation of supermassive black holes from the collapse of strongly self-interacting dark matter

Evidence for high-redshift supermassive black holes challenges standard scenarios for how such objects form in the early universe. Here, we entertain the possibility that a fraction of the cosmological dark matter could be ultra-strongly self interacting. This would imply that gravothermal collapse occur at early times in the cores of dark matter halos, followed by accretion. We study under which conditions on the abundance and interaction strength and structure of such ultra self-interacting dark matter the black holes resulting from the end-point of gravothermal core collapse can seed the observed, early-forming supermassive black holes. We find, depending on the velocity dependence of the self-interaction cross section, a bimodal structure in the favored parameter space, where data points to either a small collapsing dark matter fraction with a large cross section, or a large fraction and a relatively small cross section. While self-interaction cross sections with different velocity dependence can explain observations, we find that the best, self-consistent results correspond to a Rutherford-like self-interaction, typical of long-range dark-sector forces with light mediators. We discuss complementary observational probes if this scenario is realized in nature, focusing especially on the expected intermediate mass black holes predicted to exist in smaller galaxies.

Analyzing the influence of structural changes on CO2 emissions in OECD countries: Employing panel cointegration techniques

Structural transformations in OECD countries significantly influence carbon dioxide (CO2) emissions, affecting economic and social dimensions. These transformations encompass changes in industrial composition, technological progress, energy consumption patterns, and policy frameworks. This research investigates the impact of such structural shifts on CO2 emissions across a panel of 38 OECD countries between 2000 and 2021, using panel cointegration techniques to ensure robust analysis. The study confirms the presence of cross-sectional dependence among countries and establishes long-run cointegration relationships. Results from Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) models indicate that renewable energy, advancements in information and communication technology, and structural changes significantly reduce CO2 emissions. In contrast, economic growth, reliance on non-renewable energy, and institutional quality are linked to higher emissions. However, estimates derived from Panel-Corrected Standard Errors (PCSE) and Mean Group Panel (MGP) methods differ from those of FMOLS and DOLS, underscoring potential methodological variances in evaluating these relationships. This study highlights the pivotal role of structural changes in emission reduction strategies, while also emphasizing the importance of methodological choices in policy analysis. The findings provide valuable insights for policymakers aiming to align economic growth with environmental sustainability within OECD countries. Moreover, the research stresses the necessity of incorporating structural changes into long-term climate strategies to ensure their effectiveness. Future studies could expand the analysis by integrating more recent data and exploring non-linear relationships to refine policy recommendations further.

On the Financial Determinants of the Piotroski F-Score: An Analysis of Borsa İstanbul Firms

This study investigates the factors effective on Piotroski F-score which is a proxy for financial health of the firms. Manufacturing firms operate in Borsa İstanbul are considered in the analyses with using the time period of 2017:Q1-2024:Q3. This study contributes to the literature by identifying financial determinants of Piotroski F-Score in Türkiye. Driscoll and Kraay (1998) estimator is used with fixed effect panel regression in order to handle issues of heteroscedasticity, cross sectional dependency and autocorrelation in the model. Altman Z-score, return on invested capital, market to book ratio, Tobin’s Q ratio and Beneish M-score significantly impact Piotroski F-score. According to the regression results, companies with lower financial distress risks (higher Altman Z-score) are expected to have better financial health. Similarly, those with improved return on invested capital tend to exhibit stronger financial health. Moreover, firms with higher market-to-book ratios are generally more profitable, potentially leading to higher Piotroski F-scores, indicating better financial health. A higher Tobin’s Q value suggests greater performance expectations from the company, which correlates with higher financial health. Conversely, a negative relation between the Beneish M-score and Piotroski F-score implies that companies with a higher likelihood of earnings manipulation tend to have weaker financial health.

How Green Growth, Institutional Quality and Globalization Impact Environmental Sustainability in the selected OBOR Economies: The Role of Energy Efficiency

The quality of the environment is gradually declining dramatically due to mankind's activity, resulting in a threat to the sustainability of our ecosystem. However, this study investigated the problem by considering effective indicators such as green growth, institutional quality, globalization, and energy efficiency. Therefore, this study explores the nexus between green growth (GG), institutional quality (IQ), and globalization (Glb) with environmental sustainability (CO2). The study also includes Industrialization (Ind) and Trade Openness (ToP) as control variables. Moreover, the study contributes to the literature by predicting the net moderating potential effect of energy efficiency (EE) improvements on environmental sustainability. The study employs the 18-year data for the period 2005 to 2022 from 96 selected OBOR countries. The data sorting accounted for cross-sectional dependence (CSD), the Breusch-Pagan LM, Pesaran scaled LM, and Pesaran CD, 2007 tests were used and similarly for Slope Coefficient Heterogeneity (SCH), Pesaran, Yagmata. 2008 tests were used. The second generation method, Pescaran tests namely CIPS and CADF were used to check the stationarity of the data. This study employed the PMG-ARDL model for the data analysis. MG, AMG, and DFE estimates were also performed to check the robustness of the results of the model that unveil the long-run as well as short-run relationships. The long-run results revealed that GG, IQ, Ind, and ToP have a positive and significant relationship with CO2 whereas IQ has an inverse relationship. Similarly, in the short run GG, and Ind are positively significant with CO2. The moderation effect observed on GG and CO2 nexus is insignificant whereas the moderation effect on IQ and Glb has been seen as significant with CO2 nexuses. The finding indicates that when setting sustainable goals, it must review the determinants of CO2 emission specifically for OBOR economies, as environmental sustainability is more challenging than reducing pollution.

Sustainable development strategies in enterprise management: Innovation and responsibility

This study seeks to determine the relationship between corporate social responsibility, innovation, environmental management, the regulatory environment, and digital infrastructure on sustainable enterprise performance globally from 2005–2023. Pesaran's cross-sectional dependence test indicated an issue of cross-sectional dependency among the series, so the second-generation unit root test of the cross-sectional augmented IPS (CIPS) presented by Pesaran was applied. The unit root test showed that few variables are stationary at level, while most are stationary at first difference, I(0)/I(1). The Westerlund cointegration test was applied, and the results confirmed a long-run relationship among the variables. A mixed order of integration and the existence of cointegration are recommended for the use of cross-sectional autoregressive distributed lag (CS-ARDL). The CS-ARDL results show that corporate social responsibility, innovation, the regulatory environment, and digital infrastructure have a significantly positive relationship with sustainable enterprise performance. In contrast, management of the environment has a significantly negative relationship with sustainable enterprise performance globally. It is recommended that the policy on why organizations should employ sustainable practices states that it is necessary to encourage creativity, invest in better digital infrastructure, and implement more comprehensive legal regulations globally. Policymakers from lower-income and middle-class economies must invest in infrastructure development.

The Impact of Greenhouse Gas Risks on Stock Market Returns: An Application on G7 Countries

This study investigates the impact of greenhouse gas risks on stock market returns. While carbon dioxide, methane, and nitrogen gas emissions are taken as greenhouse gases; the stock market benchmark indices of the G7 countries, which are defined as the seven most developed countries in the world, are taken as the basis for the stock market. Due to data limitations, the scope of the current study has been set as the 2000-2020 time period and the panel data analysis method has been applied. In this study, endogeneity and multicollinearity problems, cross-sectional dependence, and homogeneity/heterogeneity tests are tested respectively, and the model is estimated by performing unit root analysis in line with the findings obtained. The results of the analyses indicate that there are no endogeneity and multicollinearity problems among the variables used in the study, there is cross-sectional dependence, the variables are stationary at level I(0), there are problems of autocorrelation in the panel and it is appropriate to estimate the model with the fixed effects model. As a result of the estimation with the robust model estimator that solves the problem of autocorrelation, it is found that carbon dioxide and methane have a negative effect on stock market return, while nitrogen gas has a positive effect on stock market return. These findings suggest that investors reflect their concerns about climate change to stock markets through greenhouse gas emissions.

Is income inequality – conflicts nexus moderated by the quality of governance? Insight from sub-Saharan Africa

PurposeThe aim of this study is twofold. First, the study examines the effect of income inequality on conflicts in sub-Saharan Africa (SSA). Second, the study unveils the role of governance in income inequality – conflicts in sub-Saharan Africa (SSA).Design/methodology/approachThe study adopts the ordinary least square estimation technique (OLS) as the baseline model. However, given that so many panel data models exhibit some form of cross-sectional and temporal dependence, the study also adopts the Driscoll–Kraay cross-sectional and spatial-consistent covariance matrix estimator.FindingsThe study finds that income inequality fuels conflicts in SSA. Similarly, the results show that an increase in the quality of governance reduces conflicts. Importantly, the result shows that the quality of governance mitigates the negative effects of income inequality on conflicts in SSA. The research and policy implications are discussed.Originality/valueThe study examines the role governance in income inequality – conflicts nexus in SSA.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2024-0055

Life expectancy and health care spending in South Asia: An econometric analysis

Affordable health care is often a result of increased government spending on the health sector. Out-of-pocket expenses remain the primary health care funding source in many South Asian nations. Lack of adequate public funding for health services, difficulty in obtaining health insurance, and high out-of-pocket costs can result in indebtedness, reductions in actual consumption, and decreased access to health care services. The study examines life expectancy and health care spending in South Asian countries. The life expectancy of South Asian countries is studied as a health outcome in relation to health care spending, gross national income per capita, and expected years of schooling. This study is based on secondary data from World Bank statistics that covers eight South Asian countries from 2000 to 2021, for a total of 176 pooled time series and cross-sectional observations. The data were analysed using econometric models, including the cross sectional dependency test, panel unit root test, panel co-integration test, vector error correction model, pair-wise Granger causality test, and Wald test statistics. The vector error correction model results indicate that health care spending, anticipated years of schooling, and gross national income per capita have a long-run association with health outcomes. Health care spending, per capita gross national income, and expected years of education have all greatly enhanced life expectancy in South Asian countries. An effective health strategy is necessary to increase people’s healthy life expectancy and well-being. To accomplish this, government may need to promote school enrolment to help people become more health literate and aware of their health outcomes. As a result, persons with more years of schooling have better health, higher levels of well-being, healthier habits, and ultimately, a longer life expectancy. This study will provide an important insight to policymakers in improving health outcomes through targeted and sustained health care spending in South Asia.

Greening the Gulf: A Deep-Dive into the Synergy Between Natural Resources, Institutional Quality, Foreign Direct Investment, and Pathways to Environmental Sustainability

Environmental quality is a global concern, especially in Gulf Cooperation Council (GCC) countries where abundant mineral resources, economic growth, and globalization have strained the environment through urbanization and resource exploitation. This study examines the impact of globalization (GLOL), urbanization (URBN), natural resource extraction (NRER), institutional quality (INSQ), and foreign direct investment (FDI) on environmental quality in GCC countries from 1999 to 2021. Cross-sectional dependence (CSD) was assessed using the Lagrange Multiplier (LM) and cross-dependence (CD) techniques, and stationarity was confirmed with the Levin–Lin–Chu test. The Augmented Dickey–Fuller (ADF) co-integration test verified long-term relationships, and Pooled Mean Group Autoregressive Distributed Lag (PMG-ARDL) methodology assessed short- and long-term effects. Our findings show that FDI, GLOL, and INSQ have negative long-term impacts on environmental quality, while NRER and URBN are beneficial. In the short term, FDI and INSQ improve green quality, while GLOL, URBN, and NRER have detrimental effects. Policy recommendations include discouraging FDI in non-renewable projects, promoting sustainable FDI, addressing income inequality to improve environmental quality, and investing in urban development to reduce ecological footprints (ECFTs) and enhance environmental quality in GCC countries.

Domestic and External Drivers of Inflation in Oil Importing Developing Countries

This paper explores inflation drivers in 12 oil-importing developing economies, focusing on domestic and external drivers, such as monetary policy rate, government expenditure, global oil prices, exchange rate, imports, global food prices, and other factors. The study aims to establish a hierarchy of these drivers from the most to the least significant, which is essential for a better implementation of anti-inflationary policies in oil-importing developing countries. Using Seemingly Unrelated Regression (SUR) model and second-generation panel unit root test to handle cross-sectional dependence, and applying Dumitrescu-Hurlin panel Granger causality approach to confirm SUR outcomes, this research paper revealed for the period between 2000Q1, and 2023Q2 that lagged inflation is the most important driver of current inflation, supporting the theoretical concept of inertial inflation. Unexpectedly, this study showed that monetary policy rate is positively impacting inflation, confirming the presence of the price puzzle. Additionally, monetary base doesn’t have any significant impact on aggregate price level, meaning that the inflation is not a monetary phenomenon for the studied countries. Producer prices, used as a proxy for domestic supply shocks, seemed to have a positive and significant effect on inflation. Government expenditure, trade openness, and global oil prices have notable effects. Even if all the studied countries are oil importers, the impact of oil prices on inflation is mitigated by subsidies and price controls. Finally, inflation is negatively affected by imports and exchange rate. The study underscores the necessity for new central bank tools adapted to these countries context, monetary and fiscal policies coordination, a strategic use of subsidies, and an integrated policy to improve market competition.

Exploring the Relationship between CO2 Emission, Economic Growth, and Energy Consumption at Aggregate Level: A Panel Data Analysis

This article explores the relationship between CO2 emissions, economic growth, energy consumption, and, other control factors for the eight highest CO2-emitting countries (USA, Russia, Iran, China, Germany, India, Japan, and Canada) in 1995-2023. The m objective of the study is to determine how economic growth (GDP), energy consumption (EC), industrial production (IP), and other macroeconomic factors influence CO2 emissions. Using panel data analysis, this study applies various econometric techniques, including fixed and random effects models, Multicollinearity tests, heteroscedasticity tests, and cross-sectional dependence tests. Independent variables include GDP, Total energy use, Industrial output, Density of the population, and Trade while the dependent variable is CO2 emission. The results suggest that energy consumption positively correlates with CO2 emission, where, for each unit of energy consumption, CO2 emission increases by 0.0024 units. The outcomes also reveal a negative correlation of international trade with CO2 emissions implying that trade inhibits emissions. However, the relationship between GDP and, carbon emissions was formed to be statistically insignificant. Population density and industrial production have mixed effects on emissions, with industrial production showing a positive impact. The study emphasizes the importance of adopting cleaner energy sources, enhancing energy efficiency, and considering trade policies that might reduce emissions. The findings suggest that transitioning from coal and oil to cleaner energy sources, such as natural gas, could be an effective strategy for reducing carbon emissions without significantly hindering economic growth. The study provides valuable insights for policymakers in high-emission countries aiming to balance economic development with environmental sustainability.

Unveiling radii and neutron skins of unstable atomic nuclei via nuclear collisions

Total reaction, interaction, and charge-changing cross sections, which are kinds of cross sections standing for total nuclear collision probability in medium-to high-energy region from a few to several hundred MeV, have been extensively utilized to probe nuclear sizes especially for unstable nuclei. In this mini review, experimental techniques and recent findings from these cross sections are briefly overviewed. Additionally, two new methods to extract neutron skin thickness solely from the above cross sections are explained: One is utilizing the energy and isospin dependence of the total reaction cross sections, and the other is the combination of the total reaction and charge-changing cross section measurements.

High-temperature measurements of acetylene VUV absorption cross sections and application to warm exoplanet atmospheres

Most observed exoplanets have high equilibrium temperatures (T$_ eq $ > 500 K). Understanding the chemistry of their atmospheres and interpreting their observations requires the use of chemical kinetic models including photochemistry. The thermal dependence of the vacuum ultraviolet (VUV) absorption cross sections of molecules used in these models is poorly known at high temperatures, leading to uncertainties in the resulting abundance profiles. The aim of our work is to study experimentally the thermal dependence of VUV absorption cross sections of molecules of interest for exoplanet atmospheres and provide accurate data for use in atmospheric models. This study focuses on acetylene (C$_ $H$_ We measured absorption cross sections of C$_ $H$_ $ at seven temperatures ranging from 296 to 773 K recorded in the 115-230 nm spectral domain using VUV spectroscopy and synchrotron radiation. These data were used in our 1D thermo-photochemical model, to assess their impact on the predicted composition of a generic hot Jupiter-like exoplanet atmosphere. The absolute absorption cross sections of C$_ $H$_ $ increase with temperature. This increase is relatively constant from 115 to 185 nm and rises sharply from 185 to 230 nm. The abundance profile of C$_ $H$_ $ calculated using the model shows a slight variation, with a maximum decrease of 40<!PCT!> near 5 times 10$^ $ bar, when using C$_ $H$_ $ absorption cross sections measured at 773 K compared to those at 296 K. This is explained by the absorption, higher in the atmosphere, of the actinic flux from 150 to 230 nm due to the increase in the C$_ $H$_ $ absorption in this spectral range. This change also impacts the abundance profiles of other by-products such as methane (CH$_ $) and ethylene (C$_ $H$_ We present the first experimental measurements of the VUV absorption cross sections of C$_ $H$_ $ at high temperatures. Similar studies of other major species are needed to improve our understanding of exoplanet atmospheres.

The consumption-based carbon emissions effects of renewable energy and total factor productivity: The evidence from natural gas exporters

This study first time explores the impact of total factor productivity, renewable energy, exports, imports, and income on carbon emissions in the Gas Exporting Countries Forum (GECF) nations. To ensure that the results are sound and policy insights are well-grounded, three main issues of panel data – cross-sectional dependency, heterogeneity, and nonstationarity – are addressed using cutting-edge methods. Moreover, a theoretically justified framework is employed, offering advantages such as considering a broad set of factors, which are actionable from a climate policy perspective, with dual benefits of emissions reduction and supporting clean growth. We find that total factor productivity, renewable energy, and exports reduce carbon emissions, while income and imports have an increasing effect. Policymakers in GECF countries may consider implementing measures to support technological advancements, efficiency improvements, increased use of renewable energy, expanded exports, and lowered imports. They can reduce emissions while promoting sustainable economic growth.

Globalization, Financial Development, and Environmental Degradation: Evidence from West African Countries Using Ecological Footprint

This study examines the effects of globalization and financial development on environmental degradation, incorporating renewable energy consumption and per capita income for selected West African countries over the period 1990-2018. Researchers in this area mostly use carbon dioxide emissions as an indicator for environmental degradation. In contrast, the current study uses ecological footprint––a broader indicator of environmental sustainability. Owing to the presence of cross-sectional dependence and heterogeneity in the panel data, the study deploys Common Correlated Effects Mean Group (CCEMG) and Augmented Mean Group (AMG) estimators. The findings demonstrate that globalization and financial development are inimical to the environment by increasing ecological footprint. Furthermore, economic growth contributes to environmental degradation. The findings of this study have very salient policy implications for the selected African countries.

Exploring the Effects of Economic Policy Uncertainty, FDI, and Energy Use, on Environmental Quality in BRICS

Using country-level data, this study examines the role of economic policy uncertainty (EPU) and the contribution of economic growth variables such as foreign direct investment (FDI), energy consumption (EC), and GDP on the environment quality in BRICS: Brazil, Russia, India, China, and South Africa between 2000 and the year 2023. Analyzing the relationships with a focus on short- and long-run dynamics by using a set of the most advanced econometric techniques including cross-sectional dependence tests, the panel PMG-ARDL model, and robustness checks with FMOLS, The findings show that EPU improves environmental quality in the long run by reducing pollution-intensive activities in uncertain times. On the contrary, FDI and EC appear to have a non-negligible negative impact, indicating their role in increasing environmental degradation, especially in fossil fuel-dependent economies with weak environmental regulations. GDP has a more complicated relationship: it is a powerful measure of growth (of how the wealth of nations increases), but also of sustainability. An additional consideration the study highlights is that knowledge based on the creation of green investment is still insufficient in BRICS-alluding to the importance for these nations to adopt stringent environmental regulations, support clean energy, and finance green investments that promote decoupling economic development from environmental damage. Policy implications of these results are discussed in the context of achieving sustainable development in the face of global environmental change. More research is needed to tease out the heterogeneous impacts of such policy uncertainty, as well as to take into account sectoral variation in FDI flows to improve targeted policy response to such environmental type’s effects.

Will institutional quality moderate the effects of national intellectual capital on economic growth?

ABSTRACT In the knowledge-based economy, the significance of national intellectual capital for economic growth is well-established. However, the moderating influence of institutional quality on this dynamic has not been adequately addressed in prior research. This study examines the moderating role of institutional quality in the relationship between national intellectual capital and economic growth across 20 Asia-Pacific countries over the past two decades. Using DOLS and FMOLS techniques, which account for cross-sectional dependence and slope homogeneity in panel data, we examine how institutional quality influences the impact of national intellectual capital on economic growth. Our empirical findings indicate that increases in both national intellectual capital and institutional quality significantly contribute to economic growth. Moreover, the positive effect of national intellectual capital on economic growth is amplified by higher institutional quality. Additionally, we also find that enhancing international trade supports income per capita in the Asia-Pacific countries. These results suggest that policies aiming to support sustainable economic growth should prioritise knowledge management and international trade, particularly in the context of technological advancement.

Investigating the biodiversity conservation capability of technological innovation and FinTech

Human activities, primarily economic growth, and technological innovation, threaten global biodiversity. This study utilizes 22-year panel data from 87 developing countries and a novel cross-sectional heterogeneous factor analysis-based financial technology index to investigate how economic growth, renewable energy consumption, technological innovation, natural resources, and financial technology affect biodiversity. To account for cross-sectional dependency, this study employed a Panel Autoregressive Distributive Lagged with Pooled Mean Group specifications within the Driscoll and Kraay standard error estimator. The findings revealed that the log of Gross Domestic Product (GDP) had an inverted U-shaped effect. Moreover, economic growth, renewable energy, and FinTech can improve biodiversity conservation. Traditionally, technological innovation and unregulated resource exploitation have posed threats to biodiversity. This study focused on responsible economic development and practical solutions to biodiversity threats posed by technological innovation and unrestrained resource use. FinTech can promote sustainable behaviors and divert funds from ecosystem-harming projects to biodiversity-friendly ones. Innovative financial instruments enable stakeholders to balance nature. This study demonstrates that FinTech, renewable energy, and responsible economic growth can help reverse biodiversity loss. We provide the policy implications of our research.