Assessing the significance of FinTech and mineral resource depletion in combating energy poverty: Empirical insights from BRICS economies

Energy poverty, a pervasive and multifaceted challenge, remains a critical issue on the global development agenda. In comparison, the two key domains, Financial Technology, and mineral resources, can be central in the battle against energy poverty. Therefore, this study explores the interplay between Financial Technology and the depletion of mineral resources in the context of reducing energy poverty within the BRICS economies (2004-2021). The study constructs a composite index of energy poverty, engaging multiple indicators based on their logical relevance from the literature. To this end, the robust econometric estimator "Panel Method of Moments Quantile Regression" is applied. The estimates imply that supply-side Financial Technology reduces energy poverty by 0.0262-0.0568% across quantiles. Demand side Financial Technology forms conducive to reducing energy poverty by 0.0696 to 0.0385. Financial Technology (Usage) reduces energy poverty by 0.0627 to 0.0329%. However, the depletion of mineral resources increases energy poverty by 0.1-0.2 % (overall) in BRICS by reducing energy access. The moderate impact of Financial Technology, combined with mineral resource depletion, has intensified competition for limited resources, exacerbating energy poverty. A feedback hypothesis is explored between Financial Technology and energy poverty, whereas mineral resource depletion outlines a one-way causal link with energy poverty. At the same time, the foreign direct investment inflow is favorable to reducing energy poverty by increasing access to energy. The results provide policy recommendations to take advantage of Financial Technology and tackle the repercussions of mineral resource depletion to reduce energy poverty in the BRICS economies.