Digital Finance and Ecological Sustainability: Revisiting the Load Capacity Curve in the United States

This study examines the role of financial technology (FinTech) and the digital economy in shaping environmental sustainability in the United States over the period 1990–2021, within the framework of the Load Capacity Curve (LCC) hypothesis. Unlike conventional indicators, the Load Capacity Factor (LCF) is employed as a comprehensive measure of ecological sustainability, capturing the balance between biocapacity and ecological demand. To explore both short-run dynamics and long-run equilibrium relationships, the study adopts the Autoregressive Distributed Lag (ARDL) model, complemented by FMOLS, DOLS, and CCR estimators for robustness. The findings reveal that economic growth exerts a nonlinear impact on environmental sustainability, validating the LCC hypothesis. Specifically, GDP negatively affects LCF, while its squared term contributes positively, indicating a transition toward sustainability…