Financial Technology and IT Management towards Green Economy

This research analyzes the intricate connections among GDP, ICT use for financial inclusion, energy conservation, urbanization, and their cumulative effect on carbon emissions in the USA from 1990 to 2022. Using unit root assessments to examine the non-stationarity of key factors, the study incorporates the ARDL method to explore both short- and long-term dynamics. The results reveal that GDP expansion and urbanization negatively impact environmental health, suggesting that increased financial activities and urban population growth contribute to higher pollution levels due to greater fossil fuel consumption and resource exploitation. Conversely, ICT adoption, financial accessibility, and energy efficiency exhibit a negative link with CO ₂ emissions, indicating that advancements in technology, sustainable financing, and renewable energy integration could enhance the USA's environmental sustainability. The Pairwise causality test shows one way causality from GDP, energy efficiency, access to finance, and ICT to CO ₂ emissions, with no proof of inverse causality. A bidirectional causal connection within urbanization and CO ₂ emissions, adds to the significance of urban development in shaping climatic results. These outcomes underscore the necessities of ICT application, financial accessibility, and green energy investments for promoting ecological sustainability. Policymakers can use these insights to create targeted strategies that strike a balance between technological innovation, financial stability, and responsible urbanization, helping to reduce biodiversity loss and promote a cleaner, more sustainable future.