Role of FinTech and technological innovation towards energy, growth, and environment nexus in G20 economies

Abstract

The current global consumption scenario is characterized as an energy-intensive economic development, indicating a rising mismatch in the harmonious relationship between individuals and the environment. The mismatch is caused by unsustainable consumption practices that do not take into account long-term ecological repercussions. To address this mismatch, it is necessary to turn toward sustainable energy use, greener technologies, and more responsible resource management, with the goal of balancing human economic progress with environmental care. Therefore, this study examines the influence of FinTech and technological innovations on the energy-growth-environment nexus in the context of G-20 economies for the time span of 2005- 2022. The study employs the panel vector autoregressive (PVAR) model in the generalized method of moment (GMM) approach to explore the interrelationship among the variables. From the findings, it was concluded that FinTech has a positive impact on the energy-growth-environment nexus. Similar to FinTech, technological innovation also has favourable influence on the energy-growth-environment nexus. Finally, there exist positive influence of energy on growth and environment, whereas rising carbon emissions exerts negative influence on growth and renewable energy consumption. From the policy standpoint, authorities can catalyse a more sustainable and inclusive future by encouraging collaboration among the fintech, technological advancement, energy, and environmental sectors.