The influence of fintech on ecological footprint in rapidly globalizing India: can fintech drive environmental change?

Umut Uzar () and Kemal Eyuboglu ()
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Umut Uzar: Karadeniz Technical University
Kemal Eyuboglu: Tarsus University

Economic Change and Restructuring, 2025, vol. 58, issue 5, No 9, 28 pages

Abstract: Abstract This study examines the dynamic interplay between financial technology, globalization, economic growth, urbanization, natural resource consumption, and ecological footprint in India from 1975 to 2022. Employing the advanced Fourier-augmented autoregressive distributed lag model (FAARDL), the analysis accounts for potential structural breaks while assessing both short- and long-run relationships. The empirical findings reveal that financial technology and globalization significantly reduce the ecological footprint, with a one percent increase in financial technology and globalization associated with reductions in the ecological footprint by 0.042% and 0.218%, respectively. Conversely, economic growth and natural resource consumption are found to exert pressure on the environment by increasing the ecological footprint. Interestingly, urbanization emerges as a mitigating factor, suggesting that sustainable urban development can alleviate environmental stress. These results are robust across alternative estimation techniques. The findings highlight the role of financial technology adoption, globalization, and sustainable urbanization as catalysts for promoting environmental sustainability in India. Simultaneously, they emphasize the need to revisit economic growth strategies and natural resource governance through an ecological lens, thereby supporting India’s sustainable development trajectory.

Keywords: Ecological footprint; Fintech; Globalization; Economic factors; India; FAARDL (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10644-025-09924-w

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