Nexus between FinTech, renewable energy resource consumption, and carbon emissions

Firdousi, Saba Fazal; Afzal, Ayesha; Amir, Beenish

doi:10.1007/s11356-023-28219-z

Cited by 26 publications

(10 citation statements)

References 131 publications

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“…While several studies [ 39 , 49 , 71 – 75 ] have found a positive and significant long-run relationship between FDI and CO 2 emissions, we found a negative but highly significant (p≤0.01) relationship between the two in the case of GCC countries. Such a negative influence of FDI on CO 2 emissions is in harmony with the findings obtained very recently by [ 38 , 76 – 80 ]. Usually, high CO 2 emissions due to the absence of regulatory carbon emission policy instruments discourage inward FDI, and hence, a negative influence of FDI on CO 2 emissions is a likely outcome.…”

Section: Discussionsupporting

confidence: 91%

“…Also, using panel data of 30 provinces in China from 2005 to 2016, [ 75 ] found that FDI has a significant positive effect on CO 2 emission intensity. Furthermore, using a panel dataset of 26 developing countries for the 2011–2021 period, [ 76 ] found an interesting result, revealing that FinTech development/investment discourages carbon emissions. In contrast, however, some studies proved the opposite result, finding a negative but significant relationship between FDI and CO 2 emissions [ 77 – 80 ].…”

Section: Literature Review and Hypotheses Formulationmentioning

confidence: 99%

See 1 more Smart Citation

Determinants that attract and discourage foreign direct investment in GCC countries: Do macroeconomic and environmental factors matter?

Alharthi,

Islam,

Alamoudi

et al. 2024

PLoS ONE

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In general, foreign direct investments (FDIs) play a crucial role in driving a country’s economic development, promoting diversification, and enhancing competitiveness. The Gulf Cooperation Council (GCC) countries, which heavily rely on the oil and gas sectors, are particularly vulnerable to fluctuations in commodity prices. However, these countries have recognized the imperative of economic diversification and have increasingly turned to inward FDIs to achieve it. By attracting capital, advanced technology, and expertise from foreign investors, FDIs enable the GCC countries to expand their economic base beyond the oil and gas sectors. This diversification not only creates employment opportunities but also fosters resilient economic growth, ultimately leading to an improvement in the living standards of the local population. This study investigates the macroeconomic and environmental factors that potentially attract foreign direct investment (FDI) inflows into the Gulf Cooperation Council (GCC) countries in the long run. Additionally, the study explores the causal relationship between these factors and FDI inflows. The panel autoregressive distributed lag (ARDL) approach to co-integration is the primary analytical technique used, utilizing long time-series data from six GCC countries, including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE) during the period 1990–2019. The empirical results indicate that, in the long run, almost all independent variables significantly influence FDI in GCC countries. Variables such as GDP growth (GDPG), inflation (INFL), carbon dioxide emissions (CO2), and urbanization (URB) are found to be highly significant (p≤0.01) in their impact on FDI. Moreover, unemployment (UNEMP) also positively and significantly influences FDI in these countries in the long run. Based on the key findings, strategies aimed at reducing persistently high unemployment rates, maintaining population growth, viewing FDI as a driver for GDP growth, and continuing with infrastructure development and urbanization are expected to attract more FDI inflows into GCC countries in the long run. Additionally, fostering both long-term economic incentives and creating a conducive business infrastructure for investors are vital for attracting inward FDI into any nation, including those in the GCC. This research would benefit various stakeholders, including governments, local businesses, investors, academia, and the local society, by providing valuable knowledge and informing decision-making processes related to economic development, diversification, and investment promotion.

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Section: Discussionsupporting

confidence: 91%

Section: Literature Review and Hypotheses Formulationmentioning

confidence: 99%

Determinants that attract and discourage foreign direct investment in GCC countries: Do macroeconomic and environmental factors matter?

Alharthi,

Islam,

Alamoudi

et al. 2024

PLoS ONE

View full text Add to dashboard Cite

show abstract

“…In order to create a conducive climate for green Fintech businesses, the study recommends that governments think about national financial intermediation models. Financial technology is investigated by Firdousi et al [ 33 ] for its potential to increase the use of renewable energy sources and decrease carbon emissions in developing nations. The findings show FinTech's importance as deterrence against environmental degradation.…”

Section: Literature Reviewmentioning

confidence: 99%

FinTech revolution in mineral management: Exploring the nexus between technology adoption and sustainable Resource utilization in an industry 4.0 context

Xu,

Nassani,

Qazi Abro

et al. 2024

Heliyon

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“…Another study by Baloch et al (2019) [49] obtained similar findings in selected OECD countries. The impact of financial technology on renewable energy and carbon emissions has been investigated using MSCI developing countries and the result of the study shows that financial technology development stimulates renewable energy resource consumption and discourages carbon emissions and also has positive impact on economic growth [50]. Farhani and Adebola (2017) [36] probed the long-run relationship between financial development, energy demand, and economic growth by using LM unit root and Bayern Hanck cointegration over 1973-2014 in the United States.…”

Section: Energy Consumption and Financial Developmentmentioning

confidence: 99%

The non-linear relationship between globalization, financial development and energy consumption: Evidence from BRICS economies

Imran,

Liu,

Saud

et al. 2023

PLoS ONE

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In the era of globalization, financial development plays a key role in socioeconomic and environmental development. However, its adverse consequences on human life, environmental hazards, and high energy consumption cannot be ignored. Thus, this study investigates the non-linear relationship between globalization, financial development, and energy consumption for BRICS economies. In doing so, we have applied second-generation tests to identify cross-sectional dependence in the data. Cross-sectional augmented Dickey-Fuller (CADF) and Cross-sectional Im-Pesaran Shin (CIPS) have been performed to find the stationary level of variables. The long-term equilibrium link between the investigated variables has been established in continuance using the Westerlund Cointegration test. The Dynamic Seemingly Unrelated Regression (DSUR) indicates that U-shaped relationships exist for financial development and globalization with energy consumption. Conversely, there is an inverted U-shaped relationship exist between economic growth and energy consumption in BRICS. The Dumitrescu-Hurlin panel causality test findings show that a unidirectional link runs from energy consumption to financial development, economic growth to energy consumption, and globalization towards energy usage. Important policy implications have also been discussed.

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Nexus between FinTech, renewable energy resource consumption, and carbon emissions

Cited by 26 publications

References 131 publications

Determinants that attract and discourage foreign direct investment in GCC countries: Do macroeconomic and environmental factors matter?

Determinants that attract and discourage foreign direct investment in GCC countries: Do macroeconomic and environmental factors matter?

FinTech revolution in mineral management: Exploring the nexus between technology adoption and sustainable Resource utilization in an industry 4.0 context

The non-linear relationship between globalization, financial development and energy consumption: Evidence from BRICS economies

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