How fintech and institutional governance clean up transport emissions?

Transportation activities that are carried out for economic gains lead to an increase carbon emissions in the atmosphere, thus substantially triggering environmental risk. The Sustainable Development Goal 13 (SDG 13) of the United Nations urges stakeholders to develop and identify the factors that are crucial for environmental risk mitigation on an immediate basis. Therefore, this research examines the quantile moderating role of FinTech and institutional quality in the relationship between transportation and environmental risk across the top 27 contaminating countries. The Method of Moments Quantile Regression outcomes has unveiled a positive link between transportation and environmental risk, indicating that the transportation sector significantly contributes towards the environmental risk across the top 27 contaminating countries. Moreover, FinTech and institutional quality exhibit a negative relationship with environmental risk. Furthermore, the findings also disclosed that the intervention of FinTech and institutional quality can substantially suppress the impact of transportation on environmental risk. The controlling factors, gross domestic product, inflation and non-residents' patent applications, have been found to be the factors that exacerbate environmental risk. The outcomes of the robustness check using Driscoll and Kray standard error (DKse) are aligned with the benchmark findings of MMQR; despite this, the magnitude of the coefficients varies substantially. Finally, the estimated outcomes of our research disclose prudential policy implications for governing and administering the operation of think tanks and stakeholders in order for the effective mitigation of environmental risk.