This study attempts to examine the inter-relationships between environmental sustainability, financial technology, natural resource management (NRM) and renewable energy consumption.
This study utilizes the Quantile Autoregressive Distributed Lag (QARDL) methodology. The QARDL approach allows for a broad analysis that accounts for the heterogeneity of impacts across various levels of the variables. Using the data from 1998 to 2022, the study assesses the influence of Financial Technology, NRM and Renewable Energy Consumption on Environmental Sustainability by evaluating long and short-run dynamics for the Indian economy. The robustness of the model was evaluated using the endogeneity test and the Wald Test following the generation of the QARDL result. The Granger causality test is also used to reveal the causal effect among the variables.
Long-run estimation of the QARDL model reveals that all independent variables have a positive and statistically significant impact on environmental sustainability (ES), particularly in the lower and middle quantiles. The short-run counterparts show similar results. Most importantly, the Error Correction Term (ECT) is found to be negative and significant across all quantiles. The results of the Granger causality test reveal bidirectional causality among the variables.
The results of this study are supposed to contribute to the existing literature by explaining the role of financial technology in upholding ES. This research not only bridges the gap between technology and sustainability but also presents a crucial assessment of how cohesive approaches can be utilized to achieve ES goals.
