Digital financial innovation and renewable electrification: A step toward zero carbon nexus

Abstract

This study proposes a new measure of energy diversity. The impact of digital finance innovation effects of green financing (GF), economic growth (EG), renewable energy (RE), inflationary pressures, and geopolitical risks for enhancing sustainability in China were obtained using micro- and macro-level data from 2011 to 2020. A regression prediction method was applied, considering both the direct and indirect relationships between the factor predictions. Our results confirm that major economies experience significant economic growth as long-term energy diversification increases. However, energy diversification has a negative impact as short-term economic development in some nations is negatively affected by. The findings also show that in the medium- and long-term, energy variation does not support financial development in low-income nations. Therefore, additional safety precautions must be taken when diversifying energy sources.