Exploring the role of financial technologies and digital trade in shaping trade-adjusted resource consumption in E7 countries

Shubin Wang, Jiabao Li and Erlong Zhao

Resources Policy, 2024, vol. 88, issue C

Abstract: Sustainable resource management integrates inclusive prosperity and resource sustainability; however, intensified resource extraction emerged resource depletion and severe environmental consequences, particularly in emerging economies (E7). Therefore, identifying the mitigating factors of trade-adjusted mineral resources footprint (MF) is imperative to ensure resource efficiency targets. Our study evaluates the asymmetric influence of Fintech (FIN), digital trade (DT), and renewable energy (REN) on MF in E7 countries using the advanced panel method of moment quantile regression (MMQR) from 2005 to 2020. The empirical analysis reveals that FIN and REN significantly mitigate MF from middle to higher quantiles while insignificant at the lowest grid. In contrast, DT substantially instigates the MF from lower to middle quantiles while not impacting the higher MF quantiles. In the empirical procedure, alternative linear panel estimation approaches are also employed to affirm the robustness of estimates echoed by the MMQR framework. Moreover, panel causality testing is performed to ascertain the causal association among the variables, exhibiting that FIN, REN, and MF have bi-directional causality, and industrial output and MF have unidirectional causality. The findings recommend policy implications to all stakeholders in improving the progress toward efficient resource allocation.

Keywords: Fintech; Digital trade; Mineral resources; Material footprint; Renewable energy; Emerging countries (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:88:y:2024:i:c:s0301420723012060

DOI: 10.1016/j.resourpol.2023.104495

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