INTEGRATING GREEN ECONOMY AND FINANCIAL TECHNOLOGIES TO ADVANCE ENVIRONMENTAL SUSTAINABILITY

This study provides a comprehensive examination of how the green economy, financial technologies (FinTech), and governance collectively influence environmental sustainability in the United States over the period 1990–2024. Using descriptive indicators, cointegration methods, error-correction modeling, and quantile vector autoregression (QVAR), complemented by heatmap-based diagnostic analysis, the research captures both long-run equilibrium relationships and short-run adjustment mechanisms. Environmental sustainability is evaluated through the Environmental Performance Index (EPI) in conjunction with greenhouse gas emissions indicators. The results indicate that the expansion of renewable energy, forest preservation, and green-adjusted GDP significantly reduce emissions levels. At the same time, advances in financial technologies (FinTech)—such as digital payment platforms and peer-to-peer lending—broaden access to green finance and improve the efficiency of capital allocation. In contrast, digital currencies exhibit mixed environmental impacts, primarily due to their high energy consumption. Heatmap-based evidence reveals strong transmission channels, where shocks to green-economy or FinTech variables are rapidly reflected in environmental indicators, highlighting substantial structural interdependence. Moreover, governance quality plays a critical moderating role by enhancing policy alignment and strengthening adaptive resilience. Overall, the findings emphasize the need for strong institutional frameworks, well-designed green-finance incentives, and effective regulatory measures to address the environmental externalities associated with energy-intensive digital technologies.