Exploring the impact of industrialization and electricity use on carbon emissions: The role of green FinTech in Asian countries using an asymmetric panel quantile ARDL approach

The purpose of this study is to investigate how industrialization, financial development, electricity consumption, trade openness, and green FinTech affect on carbon emissions asymmetrically in Asian countries. Method/Approach: The study examined 29 years of panel data from 39 Asian countries from 1995 to 2022, sourced from World Development Indicators (WDI) and the International Monetary Fund (IMF). The study constructs a green financial technology index using principal component analysis (PCA). The study utilizes an Asymmetric Panel Quantile Autoregressive Distributive Lag (A-QARDL) model with pooled mean group (PMG) specifications to explore effects that exhibit cross-sectional homogeneous in the long-run, but heterogeneous in the short-run effects. Industrialization and financial development have a strongly asymmetric impact on carbon emissions. Industrialization causes an increase in carbon emissions at various quantiles, while green FinTech plays a crucial role in mitigating these carbon emissions. Trade openness and domestic credit to the private sector also help reduce carbon emissions. The study emphasizes the significance of employing green FinTech techniques and using renewable energy sources to meet sustainable industrialization and sustainability goals in Asian countries. The policy consequences include promoting environmentally friendly industrial practices, encouraging green financial investments, and boosting government financing for private sector research and development to mitigate carbon emissions. The study employs robust modeling to analyze the role of green FinTech to enhance industrial sustainability. Both Industrialization and deindustrialization have an impact on economic emissions, and the potential of green FinTech's to promote sustainability contributes to the environment protection strategy. [Display omitted] •Assessing carbon emissions in Asia via green FinTech innovation and an asymmetric ARDL approach.•Industrialization raises emissions; deindustrialization shows significant asymmetric impacts. Green FinTech helps mitigate emissions.•Evaluating how regulating industrialial policies and renewable energy affects environmental quality through green FinTech.•Promote eco-friendly industrial practices, encourage green investments, and boost R&D funding to mitigate carbon emissions.