The Role of Natural Resource, Carbon Finance, FinTech, Financial Inclusion in Advancing Energy Efficiency: Does the Synergy Promise a Greener Future?

Yun Li; Amena Sibghatullah; Firdaus Abdullah; Muhammad Umar Islam; Aisha Khan; Shavkat Otamurodov

doi:10.5755/j01.ee.37.2.42412

Authors

Yun Li Hainan Vocational University of Science and Technology, China; Asia Pacific University of Technology and Innovation, Malaysia
Amena Sibghatullah Faculty of Business and Management, Universiti Teknologi MARA, UiTM, Selangor, Malaysia
Firdaus Abdullah Faculty of Business and Management, Universiti Teknologi MARA, UiTM, Sarawak, Malaysia
Muhammad Umar Islam Asia Pacific University of Technology and Innovation, Malaysia.
Aisha Khan School of Accounting and Finance, Faculty of Business and Law, Taylor’s University, Malaysia
Shavkat Otamurodov Department of Economics, Termez University of Economics and Service, Uzbekistan

DOI:

https://doi.org/10.5755/j01.ee.37.2.42412

Keywords:

Fintech, Financial Inclusion, Energy Efficiency, Natural Resources, Carbon Financing

Abstract

There has been a substantial body of research examining the relationship between resource growth and resource finance; limited attention has been devoted to the resource-energy interface. This gap has motivated the current study, which examines the relationship between resources, finance, and energy in the context of China. However, China has undertaken extensive efforts to diversify its energy portfolio; coal remains a dominant source of energy to meet national demand. China has been actively pursuing alternative pathways for achieving its target of carbon neutrality by 2060. Drawing attention towards an extensive literature review, this research has posited that natural resources, eco-financing, fintech, and financial inclusion are key determinants of energy efficiency. Using annual data spanning 2000 to 2023, the study employs the Quantile Autoregressive Distributed Lag (QARDL) model to examine the heterogeneous impacts of these determinants across the distribution of energy efficiency. Empirical findings reveal that fintech consistently enhances energy efficiency in both the short- and long-run across multiple quantiles. On the other hand, financial inclusion and natural resource availability negatively affect energy efficiency, suggesting the presence of structural and behavioural inefficiencies. Moreover, carbon finance is found to have no statistically significant effect on energy efficiency across all quantiles and time horizons. Based on these insights, the study proposes targeted policy recommendations to advance China’s transition toward a more sustainable, energy-efficient economy.

Author Biographies

Yun Li, Hainan Vocational University of Science and Technology, China; Asia Pacific University of Technology and Innovation, Malaysia

Yun Li is an academic affiliated with Hainan Vocational University of Science and Technology, Haikou, Hainan, China, and Asia Pacific University of Technology and Innovation, Selangor, Malaysia. Yun Li’s research interests focus on technology innovation, educational development, or applied sciences, contributing to cross-border academic collaboration and knowledge exchange between China and Malaysia. ORCID: 0000-0003-4631-5553
Amena Sibghatullah, Faculty of Business and Management, Universiti Teknologi MARA, UiTM, Selangor, Malaysia

Amena Sibghatullah is a faculty member at the Faculty of Business and Management, Universiti Teknologi MARA (UiTM), Puncak Alam, Selangor, Malaysia. Her research interests include business management, entrepreneurship, organisational behaviour, and digital innovation. She has contributed to several scholarly publications and actively engages in research projects that advance academic knowledge and practical applications in business management. ORCID: 0000-0001-8983-1588
Firdaus Abdullah, Faculty of Business and Management, Universiti Teknologi MARA, UiTM, Sarawak, Malaysia

Firdaus Abdullah is a faculty member at the Faculty of Business and Management, Universiti Teknologi MARA (UiTM), Sarawak, Malaysia. His research interests encompass business strategy, management practices, entrepreneurship, and organisational studies. He has actively contributed to academic research through publications in peer-reviewed journals and participation in regional and international conferences, aiming to advance both theoretical understanding and practical applications in business management. ORCID: 0000-0003-1678-157X
Muhammad Umar Islam, Asia Pacific University of Technology and Innovation, Malaysia.

Muhammad Umar Islam is a faculty member at the Asia Pacific University of Technology and Innovation, Malaysia. His research interests include Financial Technology, Banking Performance, and Sustainable Finance. He has contributed to scholarly research through publications in peer-reviewed journals and participation in international conferences, advancing theoretical insights and practical applications in his field. ORCID: 0000-0002-3328-2820
Aisha Khan, School of Accounting and Finance, Faculty of Business and Law, Taylor’s University, Malaysia

Aisha Khan is a PhD student at the School of Accounting and Finance, Faculty of Business and Law, Taylor’s University, Subang Jaya, Malaysia. Her research interests focus on accounting practices, financial management, corporate governance, and auditing. ORCID: 0000-0001-5344-1748
Shavkat Otamurodov, Department of Economics, Termez University of Economics and Service, Uzbekistan

Shavkat Otamurodov is a faculty member in the Department of Economics, Termez University of Economics and Service, Uzbekistan. His research interests include economic development, financial economics, international trade, or policy analysis. He has contributed extensively to academic research through publications in peer-reviewed journals and participation in international conferences, focusing on advancing both theoretical understanding and practical applications in economics. ORCID: 0000-0003-2464-8103