Whether fintech, natural resources, green finance and environmental tax affect CO2 emissions in China? A step towards green initiatives

This study examines the asymmetric effects of natural resource rents, fintech development, environmental taxes, green finance, urbanization, and economic growth on carbon dioxide (CO2) emissions in China for the period 1970-2022 by utilizing the NARDL model. In the short run, positive shocks in fintech development and natural resource rents are associated with reduced emissions, whereas negative shocks in these areas lead to increased emissions. On the other hand, environmental taxes display a more complex relationship. In the case of long run, positive and negative shocks initially increase emissions due to short-term compliance costs but ultimately reduce emissions. Therefore, findings recommend that by enhancing fintech development, strengthening its resource endowments, establishing efficient environmental taxes, promoting green finance, and encouraging sustainable urbanization and economic growth, China can capitalize on its competitive advantages in reducing CO2 emissions and achieving low-carbon development goals.