Affiliations 

  • 1 College of Economics and Management, Northwest A&F University, 3 Taicheng Road, Yangling District, Xianyang, Shaanxi, China
  • 2 College of Economics and Management, Tarim University, AlaEr, Xinjiang, China
  • 3 Department of Business Analystics, Sunway Business School, Sunway University, Kuala Lampur, Malaysia
  • 4 Faculty of Finance and Accounting, Ho Chi Minh City University of Industry and Trade, Viet Nam
Heliyon, 2024 Dec 15;10(23):e40683.
PMID: 39687159 DOI: 10.1016/j.heliyon.2024.e40683

Abstract

Human activities, primarily economic growth, and technological innovation, threaten global biodiversity. This study utilizes 22-year panel data from 87 developing countries and a novel cross-sectional heterogeneous factor analysis-based financial technology index to investigate how economic growth, renewable energy consumption, technological innovation, natural resources, and financial technology affect biodiversity. To account for cross-sectional dependency, this study employed a Panel Autoregressive Distributive Lagged with Pooled Mean Group specifications within the Driscoll and Kraay standard error estimator. The findings revealed that the log of Gross Domestic Product (GDP) had an inverted U-shaped effect. Moreover, economic growth, renewable energy, and FinTech can improve biodiversity conservation. Traditionally, technological innovation and unregulated resource exploitation have posed threats to biodiversity. This study focused on responsible economic development and practical solutions to biodiversity threats posed by technological innovation and unrestrained resource use. FinTech can promote sustainable behaviors and divert funds from ecosystem-harming projects to biodiversity-friendly ones. Innovative financial instruments enable stakeholders to balance nature. This study demonstrates that FinTech, renewable energy, and responsible economic growth can help reverse biodiversity loss. We provide the policy implications of our research.

* Title and MeSH Headings from MEDLINE®/PubMed®, a database of the U.S. National Library of Medicine.

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