Revisiting the Environmental Kuznets Curve: A Panel-Econometric Exploration of Green Innovation’s Mediating Role in the Nexus of Fintech, Green Finance, and Energy Transition (2000–2022)

Abstract

This study conducts an in-depth investigation into the environmental factors driving degradation and the role of innovations in fostering sustainable development, employing the Environmental Kuznets Curve (EKC) hypothesis. Using panel data from 60 countries over 22 years (2000–2022), the research applies advanced econometric techniques, including Generalized Method of Moments (GMM) and Granger causality tests, to address endogeneity, heteroscedasticity, and serial correlation. The findings reveal that green finance, energy transition, and financial technology (fintech) significantly reduce environmental degradation, whereas inadequate waste management exacerbates it. Additionally, green innovation emerges as a critical mediator, enhancing the effectiveness of these factors in mitigating environmental harm. The study bridges key knowledge gaps, offering policymakers actionable insights into leveraging green finance, renewable energy, and fintech for sustainable development while underscoring the need for improved waste management strategies.