FinTech, Financial Inclusion, and Environmental Outcomes: Evidence From the European Transition Towards Sustainability

ABSTRACT This paper aims to investigate Europe's transition towards sustainability. We explore the role of FinTech, financial inclusion, green innovation, renewable energy, and natural resource rents on carbon dioxide emissions, greenhouse gas emissions, and the ecological footprint. This paper applies a panel dataset of 31 European countries from 2004 to 2021. The analysis is based on the Panel Corrected Standard Error estimation followed by the Driscoll–Kraay standard errors method and Feasible Generalized Least Squares method. The results demonstrate that FinTech, financial inclusion, and renewable energy considerably lessen emissions and ecological footprint. It ends with policy issues to promote sustainable development targets in Europe.