Fintech, Green Imports, Technology, and FDI Inflow: Their Role in CO2 Emissions Reduction and the Path to COP26 - A Comparative Analysis of China

Abstract Using a Nonlinear Autoregressive Distributed Lag (NARDL) model, this study investigates the relationships among CO2 emissions, green energy imports, foreign direct investment (FDI) inflow, and financial technology (Fintech) in China. The study considers both short- and long-term asymmetries, reflecting both the positive and negative effects of the variables of interests on CO2 emissions. Results reveal that both green technology and fintech significantly increase CO2 emissions for both positive and negative shocks. In contrast, FDI inflows have conflicting outcomes, being positively beneficial during positive shocks and adversely significant during negative shocks. Furthermore, green energy imports result in a considerable rise in CO2 emissions during negative shocks. These findings emphasize the necessity of taking economic factors into consideration when developing environmental regulations. Under COP26 aims to build a greener, more sustainable future for China, policy recommendations include fostering sustainable Fintech innovation, investing in green technology research, bolstering renewable energy imports, and improving climate legislation.