The Role of Green Technological Innovation, Fintech, and Financial Development in Environmental Sustainability: A Study on Selected Asian Countries

Abstract

This study intends to explore the nexus of green technological innovations, financial development, and Fintech with environmental sustainability. It employs data from Asian economies spanning from 2012 to 2021. We intend to examine the impact of green innovations, Fintech, and financial development (measured through access to financial institutions and efficiency of financial markets) on Environmental Sustainability (measured through carbon emissions). After addressing the issues of slope heterogeneity, cointegration, and CSD, this study employs the CS-ARDL model to explore the connectedness between proposed variables. We find that Fintech and the efficiency of financial markets enhance carbon emissions, thus deteriorating environmental sustainability. On the other hand, access to financial institutions and green technological innovations improves ecological sustainability. The findings are essential for Asian economies and policymakers to attain better environmental quality.