Impact Of Green Finance, Fintech, And the Digital Economy on Environmental Sustainability
Keywords:
Digital Economy, FinTech, Environmental Sustainability, Climate Change Policy, Sustainable Investments, Panel Data Analysis, Carbon Emission Reduction, Inclusive finance, decarbonisation, Sustainable Financial InclusionAbstract
Improving environmental sustainability is a critical objective for economies seeking to accelerate global growth. The United Nations General Assembly recommends implementing the SDG-7 proposals to improve environmental sustainability. This study, using panel data, examines the impact of green finance, fintech, and digital economy on environmental sustainability India, USA, China & Ireland from 2013 to 2023.
The analysis utilized the panel unit root, panel cointegration, and pairwise Dumitrescu-Hurlin panel causality tests. Our empirical data suggest that cointegration is one of the factors examined. Green finance, the digital economy, and FinTech are strongly intertwined. The findings may provide useful insights into the development of environmental sustainability. Policymakers should create energy-compatible policies to facilitate green finance for energy systems in the India, USA, China & Ireland.
To analyse Green Finance, Financial Technology, Environmental Sustainability, and Digitalization across India, the United States, China, and Ireland over the past five years, a multi-faceted data collection approach is necessary. Green Finance data can be sourced from organizations like the Climate Bonds Initiative, OECD Green Finance and Investment, and national financial regulators. Financial Technology data, such as Statista, EY's Global Fintech Adoption Index, the World Bank's Global Findex, and Accenture, reveal key trends in digital payment systems adoption and market growth. These sources enable tracking of global trends, allowing cross-country comparisons of fintech adoption and usage, revealing regional differences and the overall development of the fintech industry. Environmental sustainability metrics, such as CO₂ emissions per capita and renewable energy consumption, provide vital insights into a country's progress in achieving environmental sustainability and identifying areas for improvement.
References
Adaba, G.B., Ayoung, D.A., Abbott, P. (2019), Exploring the contribution of mobile money to well‐being from a capability perspective. The Electronic Journal of Information Systems in Developing Countries, 85(4), e12079.
Ahmad, M., Ahmed, Z., Bai, Y., Qiao, G., Popp, J., & Oláh, J. (2022). Financial inclusion, technological innovations, and environmental quality: Analyzing the role of green openness. Frontiers in Environmental Science, 10, 851263.
Al_Kasasbeh, O., Khasawneh, O., Alzghoul, A. (2023), The real effects of Fintech on the global financial system. International Journal of Professional Business Review, 8(3), e01725.
Aldboush, H.H., Almasria, N.A., Ferdous, M. (2023), Determinants of firm profitability: Empirical evidence from Jordan’s service sector. Business: Theory and Practice, 24(2), 438-446.
CPI. (n.d.-b). Accelerating Green Finance in India: Definitions and Beyond. CPI.
DataReportal. (2021). Digital 2021: India. DataReportal – Global Digital Insights.
DataReportal. (2023). Digital 2023: India. DataReportal – Global Digital Insights.
ETBFSI.com. (n.d.). How Indian fintech funding fared in last 10 years? ETBFSI.com.
Hasan N, Agarwal C, Joshi A, Rahal D, Traisa R, Sharma S (2025;), "The two-way influence of green banking practices and green electronic word of mouth in driving green trust and green loyalty: a trust transfer perspective". International Journal of Ethics and Systems, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJOES-10-2024-0326
India Digital Summit. (2023). INTERNET IN INDIA 2023. India Digital Summit.
Jaiswal, A., Mishra, A., Kumari, K., Singh, P., & Agarwal, C. (2025, November). The impact of analyzing employee development on talent acquisition. In The canvas of knowledge: A multidisciplinary approach (pp. 122–126). Eagle Leap Printers and Publishers Pvt. Ltd.
Journal of Economics and Financial Issues, 14(2), 120-135.
Khushbu, & Agarwal, C. (2025). Green banking in the digital age: Transforming finance to sustainable finance. In Industry 5.0: Sustainable business practices for a bright future (pp. 225–247). Nova Science Publishers.
Lv, Y., Chen, W., Cheng, J. (2020), Effects of urbanization on energy efficiency in China: New evidence from short run and long run efficiency models. Energy Policy, 147, 111858.
Naser, H., Sultanova, G., Nahar, S. (2024), The impact of Fintech innovation on bank’s performance: Evidence from the Kingdom of Bahrain. International Journal of Economics and Financial Issues, 14(1), 136-143.
Rai, P., Jaiswal, R., Singh, P., & Singh, A. K. (2024). Trends and Prospects for Artificial Intelligence in Business and Economics Research. International Journal of Innovations in Science, Engineering And Management, 341-344.
RBI.2024 (n.d.). Reserve Bank of India - RBI Bulletin. Reserve Bank of India.
Statista. (2024). India: internet penetration rate 2024. Statista.
Statista. 2024 (n.d.-b). Fintech in India - statistics & facts. Statista.
Statista.2024 (n.d.-a). Green finance in India - statistics and facts. Statista.
The Boston Consulting Group. (2023a). State of the Fintech Union 2023. The Boston Consulting Group.
The Boston Consulting Group. (2023b). State of the Fintech Union 2023. The Boston Consulting Group.
TRAI. (n.d.). India's internet penetration in 2021 went up only 4.29% YoY: TRAI. BMI.
Wadhawan, N., & Seth, A. (2016). Technology revolutionizing retail practices in digital era. International Journal of Recent Research Aspects, 2(1), 60–62.
Agarwal, C., & Rai, P. (2025, October 15). Environmental wisdom and sustainable practices. In Bridging ideas: A multidisciplinary approach to knowledge and innovation (pp. 76–85). Eagle Leap Printers and Publishers Pvt. Ltd.
Mpofu, F.Y. (2024), Industry 4.0 in finance, digital financial services and digital financial inclusion in developing countries: Opportunities, challenges, and possible policy responses. InternaCPI. (n.d.-a). Landscape of Green Finance in India. CPI.
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
