Exploring the Nexus between Fintech, natural resources, urbanization, and environment sustainability in China: A QARDL study

The climate crisis is increasing fast to leave an everlasting impact on China and its operations. China faces the prospect of one region facing extreme flooding while another region grapples with scorching heat and drought. There has been a substantial rise in typhoons and storms. The food security of the nation has taken a hit, and the country has seen its rice production fall by about 8%. This issue is concerning for not only China but the whole world, as a huge number of countries depend on China for food supplies. This research studied the role of Fintech, Natural Resources and Urbanization on environmental sustainability in China by considering the data from 2000 to 2020, using the sophisticated and resilient Qunatile-based ARDL approach. The findings suggest that the use of Fintech can help to achieve green growth while the use of Natural resources can have a detrimental impact on environmental sustainability. Similarly, urbanization leads to increased human activity, which would increase the level of CO2 emissions and result in deforestation, which deteriorates the ecological balance of a country. China is recommended to introduce a carbon tax to ensure that firms find it costly to use unsustainable sources of energy. The funds raised from carbon taxes can be used to finance green projects. Fintech can be used to facilitate the green economy by allowing green loans and green finances to ensure green growth in China.