The nexus between energy consumption, financial development and ICT: A panel data analysis

Abstract

This study explores the relationship between financial development, energy consumption and information and communication technology (ICT) in a sample of 83 global countries for the period of 1990 to 2020. By employing generalized method of moments, the findings shows that there is a long run co integration financial development, ICT and renewable energy consumption. This study reveals that in standalone, emerging, and developed financial markets, the development of the financial market and its associated factors, encompassing market depth and accessibility, play an important role in promoting the usage of renewable energy. However, in frontier financial economies, a contrasting trend is observed, where financial market efficiency is associated with lower utilization of renewable energy. Furthermore, the non-linear and moderating impacts of financial market growth on renewable energy adoption vary across nations with different financial market development stages. this study further provide important policy suggestions for the sample economies in context of ICT, financial development and renewable energy consumption.