Assessment of the role of renewable energy financing and information and communication technology in carbon neutrality: evidence from RCEP economies.

Abstract

Understanding the correlation between the various forms of financing and their propensity to invest in renewable energy (RE) innovation is crucial for its successful financing. We investigate the "path" taken by innovators in the financial sector. The UN Secretary-General announced the Sustainable Energy for All Initiative in 2012 to ensure that all people can access reliable, modern energy services by 2030. Substantial monetary and technological investments at a rate much surpassing historical levels are required to accomplish this goal. This research is aimed at determining if the combination of REF and ICT may help improve environmental quality. Using econometric methods, we examine time series data from RCEP economies from 2000 to 2019. This study describes another determinant of carbon emission: economic growth, tourism, and trade openness. The study employs Cup-FM and Cup-BC tests to check the results of variables in this study. The effect of economic growth, tourism, and trade significantly positively impacts carbon emissions in this model. However, renewable energy finance and ICT adversely impact the carbon emission level. Moreover, the moderate effect of renewable energy finance on information and communication technology, tourism, and trade is found to have a negative impact on carbon emissions. The policy recommendations suggest how a country can minimize carbon emissions.