The effect of eco-friendly and financial technologies on renewable energy growth in emerging economies
Hind Alofaysan,
Magdalena Radulescu,
Daniel Balsalobre-Lorente,
Kamel Si Mohammed
Affiliations
Hind Alofaysan
Department of Economics, College of Business Administration, Princess Nourah bint Abdulrahman University, Saudi Arabia
Magdalena Radulescu
Institute of Doctoral and Post-Doctoral Studies, University Lucian Blaga of Sibiu, Sibiu, Romania; UNEC Research Methods Application Center, Azerbaijan State University of Economics (UNEC), Istiqlaliyyat Str. 6, Baku 1001, Azerbaijan; Corresponding author. Institute of Doctoral and Post-Doctoral Studies, University Lucian Blaga of Sibiu, Sibiu, Romania
Daniel Balsalobre-Lorente
Department of Applied Economics I, University of Castilla La Mancha, Spain; UNEC Research Methods Application Center, Azerbaijan State University of Economics (UNEC), Istiqlaliyyat Str. 6, Baku 1001, Azerbaijan; Department of Management and MarketingCzech University of Life Sciences PragueFaculty of Economics and Management, Prague Czech Republic; Western Caspian University, Economic Research Center (WCERC), Baku, Azerbaijan
Kamel Si Mohammed
University of Ain Temouchent, Algeria; Université de Lorraine, CEREFIGE, F-57000 Metz, France
Successfully integrating renewable energy sources depends on eco-friendliness, financial technology, and economic growth (GDP). This paper examines the dynamic effect of innovative financial and green technology on renewable energy for 38 emerging economies from 2006 to 2021. Using the dynamic First-difference Generalized Method of Moments (FD-GMM) model, the analysis identifies a critical GDP threshold of 1831.772 US dollars, significant at the 1 % confidence level. Below this threshold, GDP negatively affects green energy adoption, while above it, GDP positively influences the shift to greener energy, supporting the predicted U-shaped relationship in the data. The results conclude that eco-friendly and financial technology positively and significantly influence renewable energy adoption, where the dynamics and barriers to adopting eco-friendly and financial technologies in emerging countries may differ from those in developed nations. Based on the findings, relevant energy policies have been recommended for energy stakeholders, Tech firms and decision-makers.
