Do fintech, natural resources and globalization matter during ecological crises? A step towards ecological sustainability

The rate of biodiversity loss and forest depletion has surged significantly, primarily driven by the substantial increase in worldwide environmental deterioration. This alarming development is nearing the critical temperature limit of 2 °C, necessitating increased scrutiny. This study therefore adopts the Load Capacity Curve framework that amalgamates these concepts, offering a guide for implementing a robust and sustainable adaptation plan in the North African region. The research utilized data spanning from 1991 to 2022 and employed advanced quantitative methods, including quantile regression (QR), augmented mean group (AMG), and the Half-Panel Jackknife (HPJ) Wald-type test, to explore causality. The empirical findings challenge the notion of a U-shaped relationship between per capita GDP and ecological load capacity, revealing instead an inverted U-shaped pattern at the 25th and 50th quantiles. Additionally, the study identifies a negative and significant association between natural resource rents and globalization with the ecological load capacity factor, indicating a detrimental effect. On the other hand, Fintech demonstrates a statistically significant and positive impact on environmental sustainability, indicating a mitigating effect. Causality tests further reveal bidirectional causality between ecological load capacity and per capita GDP, GDP squared, and Fintech, while a unidirectional positive relationship exists between globalization and ecological load capacity. Based on these findings, the study puts forth several policy recommendations to support informed decision-making.