From resources to resilience: How green innovation, fintech and natural resources shape sustainability in OECD countries

This paper analyses how green innovation, Fintech, natural resources, and gross domestic product shape the emission of CO2. The study hypothesises that these factors encompass intrinsic potential to predict CO2 emissions. Particularly, OECD countries have been selected to analyse the nexus because these elements, specifically Fintech, have been observing constant increases. Therefore, data from 1990 to 2021 has been sourced to carry out the analysis. The analysis was performed using a panel co-integration approach along with a fully modified ordinary least square and dynamic ordinary least square technique. The outcomes of the study reveal that significant association has been observed among the variables, suggesting that the hypothesised factors have a strong network. Further, the outcomes propose that CO2 emissions are reduced with increasing financial development, i.e., Fintech. This implies that economies have to contribute to their financial development to reduce emissions and ensure sustainable development. Moreover, an increase in natural resource rents increases CO2 emissions. Similar findings are obtained for GDP, where a 1% increase in GDP results in a 49% upsurge of CO2 emissions. These results infer that higher economic activities deteriorate the environment. Lastly, green technology notes optimistic results for sustainability as CO2 emissions are reduced when there is an increasing trend in higher green technologies.The findings of this study offer valuable insights for policymakers and economists in OECD countries and beyond as they navigate the complex landscape of sustainability and economic growth. The research addresses the critical need to strike a balance between economic development and environmental responsibility, providing a roadmap for achieving resilience in the face of resource scarcity and climate change.