The impact of circular economy, sustainable infrastructure, and green FinTech on biodiversity in Europe: A holistic approach

Shayan Khan Kakar, Jing Wang, Noman Arshed, Tran Thi Le Hien, Sehrish Akhter and Nazir Muhammad Abdullahi

Technology in Society, 2025, vol. 81, issue C

Abstract: As Europe strives for environmental sustainability, integrating a circular economy, sustainable infrastructure, and green FinTech is crucial for enhancing biodiversity conservation. This study investigates the intricate relationship between circular economy, sustainable infrastructure, green FinTech, and European biodiversity conservation. To this end, this study constructs a 24-year panel dataset from 39 European countries. It employs a novel econometric technique called time-specific heterogeneous factor analysis to create indices for a circular economy, sustainable infrastructure, and green FinTech. Additionally, the study employed an advanced econometric Panel Autoregressive Distributed Lag model with Pooled Mean and Fourier specification (PARDL-PMG-Fourier). The findings show that the implementation of green FinTech significantly boosts biodiversity in Europe; the circular economy dampens this impact. The implementation of sustainable infrastructure considerably enhanced the conservation of biodiversity in Europe; similarly, SIN1 shows a significant cyclical or seasonal impact on biodiversity in the short run. This study proposes solid policy recommendations for the European Union, European Commission, regulators, and policymakers. The European Commission and regulators must prioritize the adoption of green FinTech to boost financial market operations and activities, refine circular economy initiatives, and emphasize sustainable infrastructure development projects. Targeted investment is necessary for sustainable resource utilization, recycling, waste reduction, and eco-friendly infrastructure in European projects. By doing so, Europe can effectively boost biodiversity conservation by mitigating cyclical and seasonal risks. These policy implications offer a streamlined framework for achieving economic and environmental sustainability goals in Europe.

Keywords: Circular economy; Sustainable infrastructure; Green FinTech; Biodiversity; Time-specific heterogeneous factor analysis; Cyclical seasonal European Union policy (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0160791X25000314
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:teinso:v:81:y:2025:i:c:s0160791x25000314

DOI: 10.1016/j.techsoc.2025.102841

Access Statistics for this article

Technology in Society is currently edited by Charla Griffy-Brown

More articles in Technology in Society from Elsevier
Bibliographic data for series maintained by Catherine Liu ().