Fintech, natural resources management, green energy transition, and ecological footprint: Empirical insights from EU countries

The advent of the Fourth Industrial Revolution has brought forth a significant array of technological advancements. In the contemporary landscape, the financial sector is a notable beneficiary of advancements in technology. However, there exists a pervasive perception of technology as a double-edged sword for the environment. In this context, this study aims to examine the interplay of financial technologies (FinTech), abundance of natural resources, and economic globalization in shaping the trajectory of green energy transition and ecological footprint (EF) in 25 European Union (EU) nations from 1990 to 2020. Moreover, this study investigates the indirect impact of FinTech on EF through the channel of green energy transition. The results indicate that FinTech, economic globalization, and urbanization significantly promote green energy transition, while economic growth negatively impacts green energy transition across these countries. The results further indicate that FinTech significantly curtails EF, while economic globalization, economic growth, and urbanization exacerbate EF. Moreover, the results uncover that FinTech also indirectly hampers EF by facilitating green energy transition. Finally, based on these results, the study suggests practical implications for policymakers in crafting energy transition policies and reducing EF to attain the objectives outlined in the Sustainable Development Goals (SDGs).