Asymmetric impact of natural resources, fintech, and digital banking on climate change and environmental sustainability in BRICS countries

Climate change and environmental sustainability concerns are spreading globally, increasing the need for understanding and the implementation of proper actions to mitigate environmental repercussions sharply. In this regard, there is a great opportunity for financial sectors, technological advancements, and the responsible utilization of natural resources to provide significant solutions for defending the planet from environmental hazards. Therefore, this study estimate the role of financial technologies, natural resources and banking and financial sector on climate change and environmental sustainability in BRICS countries between 1995 and 2022. The study applies Methods of Moments Quantile Regression (MMQR) to carry out empirical estimation. The findings show that natural resources and banking sector development have positive role in exacerbating climate change and environmental un-sustainability (at different quantiles). In terms of financial sector and financial technologies, the study finds significant negative role of financial technologies in climate change and environmental sustainability but insignificant (though positive) impact of financial sector on climate change and environmental sustainability. The concerned authorities are recommended to ensure the lending for environmental friendly and clean energy projects by finance and banking sector, promoting research and development for financial technologies and implementation of strict policies to curb over exploitation of natural resources.