From investment to impact: The role of green finance and technological innovation on German energy transition

Sulaman Muhammad and Christin Hoffmann

Renewable Energy, 2024, vol. 237, issue PB

Abstract: Germany is a global leader in environmental protection and has embraced a fast-track transition towards renewable energy adaptation. To support the continuous energy transition, an approximate sum of EUR 3000 billion needs to be mobilized by 2050, making it an exemplary case for examining the influence of green finance on renewable energy consumption and technological innovation. The objective of this study is to investigate the impact of green finance and technological innovation on renewable energy consumption across 16 federal German states, utilizing panel data from 2008 to 2021. Two novel financial proxies, green investment and environmental protection-related sales, are introduced to capture the financial mechanisms underpinning the energy transition. MMQ (method of moments quantile) regression is employed to explore the short and long-run relationship among variables. The results reveal that while environmental protection-related sales consistently increase renewable energy consumption, the positive effects of green investment manifest only in the long term. Furthermore, the results indicate that solely increasing R&D funds does not necessarily boost renewable energy consumption. However, the positive interplay between R&D and patent applications significantly increases electricity generation from renewable sources. Indicating that integrated financial and technological strategies are essential for advancing Germany's renewable energy goals.

Keywords: Green finance; Renewable energy; R&D; Patent application; Energy transition (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0960148124017336
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:237:y:2024:i:pb:s0960148124017336

DOI: 10.1016/j.renene.2024.121665

Access Statistics for this article

Renewable Energy is currently edited by Soteris A. Kalogirou and Paul Christodoulides

More articles in Renewable Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().