Investigating the biodiversity conservation capability of technological innovation and FinTech

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,...

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Main Authors: Shayan Khan Kakar, Jing Wang, Noman Arshed, Tran Thi Le Hien, Nazir Muhammad Abdullahi
Format: Article
Language:English
Published: Elsevier 2024-12-01
Series:Heliyon
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Online Access:http://www.sciencedirect.com/science/article/pii/S240584402416714X
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author Shayan Khan Kakar
Jing Wang
Noman Arshed
Tran Thi Le Hien
Nazir Muhammad Abdullahi
author_facet Shayan Khan Kakar
Jing Wang
Noman Arshed
Tran Thi Le Hien
Nazir Muhammad Abdullahi
author_sort Shayan Khan Kakar
collection DOAJ
description 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.
format Article
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issn 2405-8440
language English
publishDate 2024-12-01
publisher Elsevier
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series Heliyon
spelling doaj-art-6c035cef486b49159744e4ec12c6aa1a2025-08-20T01:59:31ZengElsevierHeliyon2405-84402024-12-011023e4068310.1016/j.heliyon.2024.e40683Investigating the biodiversity conservation capability of technological innovation and FinTechShayan Khan Kakar0Jing Wang1Noman Arshed2Tran Thi Le Hien3Nazir Muhammad Abdullahi4College of Economics and Management, Northwest A&F University, 3 Taicheng Road, Yangling District, Xianyang, Shaanxi, ChinaCollege of Economics and Management, Tarim University, AlaEr, Xinjiang, China; College of Economics and Management, Northwest A&F University, 3 Taicheng Road, Yangling District, Xianyang, Shaanxi, China; Corresponding author. College of Economics and Management, Tarim University, AlaEr, Xinjiang, ChinaDepartment of Business Analystics, Sunway Business School, Sunway University, Kuala Lampur, MalaysiaFaculty of Finance and Accounting, Ho Chi Minh City University of Industry and Trade, Viet NamCollege of Economics and Management, Northwest A&F University, 3 Taicheng Road, Yangling District, Xianyang, Shaanxi, China; School of Rural Technology and Entrepreneurship Development, Kano State Polytechnic, Kano, NigeriaHuman 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.http://www.sciencedirect.com/science/article/pii/S240584402416714XBiodiversityLoad capacity curve hypothesisDynamic panel analysisFinTechTechnological innovation
spellingShingle Shayan Khan Kakar
Jing Wang
Noman Arshed
Tran Thi Le Hien
Nazir Muhammad Abdullahi
Investigating the biodiversity conservation capability of technological innovation and FinTech
Heliyon
Biodiversity
Load capacity curve hypothesis
Dynamic panel analysis
FinTech
Technological innovation
title Investigating the biodiversity conservation capability of technological innovation and FinTech
title_full Investigating the biodiversity conservation capability of technological innovation and FinTech
title_fullStr Investigating the biodiversity conservation capability of technological innovation and FinTech
title_full_unstemmed Investigating the biodiversity conservation capability of technological innovation and FinTech
title_short Investigating the biodiversity conservation capability of technological innovation and FinTech
title_sort investigating the biodiversity conservation capability of technological innovation and fintech
topic Biodiversity
Load capacity curve hypothesis
Dynamic panel analysis
FinTech
Technological innovation
url http://www.sciencedirect.com/science/article/pii/S240584402416714X
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AT jingwang investigatingthebiodiversityconservationcapabilityoftechnologicalinnovationandfintech
AT nomanarshed investigatingthebiodiversityconservationcapabilityoftechnologicalinnovationandfintech
AT tranthilehien investigatingthebiodiversityconservationcapabilityoftechnologicalinnovationandfintech
AT nazirmuhammadabdullahi investigatingthebiodiversityconservationcapabilityoftechnologicalinnovationandfintech