Impact of FinTech and control of corruption on environmental sustainability

Abstract

The current study inspects the effect of Institutional Quality and FinTech on environmental sustainability in the “Environmental Kuznets Curve (EKC)” scenario. The study employs data on six aspects of institutional quality and carbon emissions “from 82 countries from 2017 to 2024. The study observes that carbon emissions can be reduced by controlling corruption and enhancing regulatory quality in the EKC framework. However, FinTech reduces environmental quality. The causality test reveals unidirectional causality of FinTech, Growth and industrialization for ecological sustainability (CO₂ emission), while all other variables have bidirectional causality. The findings suggest that a fair institutional quality framework is essential for environmental protection, and all countries should promote the consumption of green and clean energy behind the mining of FinTech activities to enhance climate quality by reducing carbon emissions.