Navigating the path to environmental sustainability: Exploring the role of fintech, natural resources and green energy in Belt and Road countries

Yi Li, Christy Ying Ni Liu, Ut Lao and Jiangtong Dang

Resources Policy, 2024, vol. 88, issue C

Abstract: The world is currently facing a major environmental crisis, with rising global warming, sea levels, droughts, and floods. This has particularly affected the poorest nations, leading to increased flooding and droughts that impact their livelihoods. To combat this, nations worldwide need to develop strategies to reverse environmental damage and achieve carbon neutrality. The Belt and Road Initiative (BRI) countries are responsible for a significant portion of pollution, making it crucial for them to take strong climate action. Besides, the financial technology (FNT), renewable energy generation (GEN) and the optimum usage of natural resources (NTR) can help the BRI economies towards Environmental Sustainability. This study used the “Cross-Sectional Autoregressive Distributed Lag Model” (CS-ARDL) model and focused on BRI countrieswhereby the data comprised of obervationsfrom 1990–2020. It was found that FNT can help reduce the cost of financial services and increase financial inclusion while also reducing carbon emissions. However, the use of NTR can have a detrimental effect on achieving environmental targets. It is important to transition towards GEN to reduce CO2 emissions and promote sustainable growth. Popular GEN methods like wind and solar power can significantly reduce emissions and satisfy a large portion of energy needs. BRI countries must take environmental action, promote the use of GEN, incentivize its adoption, encourage the development of FNT, and discourage the use of NTR-related fossil fuels to achieve environmental targets.

Keywords: Environmental sustainability; Fintech; Natural resources; Green energy; CS-ARDL (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:88:y:2024:i:c:s0301420723011960

DOI: 10.1016/j.resourpol.2023.104485

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