Nexus of institutional quality and technological innovation on renewable energy development: Moderating role of green finance

Peng Zhang, Zeyun Li, Wafa Ghardallou, Yan Xin and Jie Cao

Renewable Energy, 2023, vol. 214, issue C, 233-241

Abstract: Around the world, the green economy is seen as a practical way to achieve sustainability. New research using data from the African nations' nexus of institutional quality and technological innovation on renewable energy. This research aims to shed light on how institutional quality spending promotes green technological innovation expansion and institutional quality in the African nations. Therefore, this study examined the effects of technological innovation, established value, renewable energy, vestige oil energy, and financial development on CO2 releases in 24 African nations between 2001 and 2019. A second-generation panel approach was utilized to examine the interdependencies between the variables across time. These methods accounted for heterogeneity and the possible of remaining cross-sectional dependence. Empirical data from the Commonly Correlated Effects Mean Group (CCEMG) estimate and the Augmented Mean Group (AMG) estimator suggests that using eco-friendly technical advancement and renewable energy sources significantly reduces carbon dioxide emissions. But there are several variables linked to rising CO2 emissions, such as improved institutional frameworks, thriving economies, and a preference for fossil fuels over renewable energy. Based on these findings, we concluded that for African countries to achieve their sustainable development objectives, they need to increase their investment in environmentally friendly technological advances and renewable energy sources.

Keywords: Green finance; Renewable energy development; Institutional quality; Technological innovation (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:214:y:2023:i:c:p:233-241

DOI: 10.1016/j.renene.2023.05.089

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