Are digital economy and financial structure driving renewable energy technology innovations: A major eight countries perspective

Abstract

This ground-breaking research used simultaneous quantile regression (SQR) to explore the role of the digital economy and financial structure indexes proposed by principal component analysis on renewable energy technology innovations (RETI) for major eight (M-8) countries. Further, the research strengthened analysis by involving the moderating effects of governance and financial structure to seek the dynamic synergy between the digital economy and RETI nexus. The robustness of baseline models has been carried out through multiple estimators to draw several significant results. The findings of our study stimulated that the digital economy has a significantly positive impact on RETI. Put simply, a marginal growth of 1 % in the digital economy is correlated with a substantial average rise of 0.425% in the development of the RETI. Similarly, the financial structure assumes a crucial role, employing an average influence of 1.396% on the progress of RETI. Moreover, the moderation of governance and financial structure significantly contributes to developing a digital economy RETI nexus. The implications of these findings are extensive and have significant relevance for policymakers and academics in the M-8 countries. These insights are of great value as they can serve as a guiding tool for decision-making, providing direction on effectively utilizing the digital economy and financial framework to navigate the development of Renewable Energy Technology Infrastructure appropriately. The information is more than just facts and can serve as a strategic guide towards a future characterized by enhanced sustainability and innovation.