Financial inclusion role on energy efficiency financing gaps in COVID-19 period: empirical outcomes of emerging nations

Abstract

The structural imposed crises of the COVID-19 have halted the system of financial intermediation at large. By this, the energy sector needs huge financing for energy efficiency maximization in the COVID-19 crises. Thus, the current research aims to inquire the role of financial inclusion in filling the energy efficiency financing gaps for the period of COVID-19 outbreak. The governments of many countries are facing fiscal deficits and trying to survive under tight substantial fiscal limitations. So providing a cheap and efficient energy in modern times, under COVID-19 crises, is merely impossible for many economies because the main source of income for energy sector is the energy users, and having inefficient energy for consumption is raising energy poverty at large. Therefore, COVID-19 crises raised a wide energy financing gap in modern times that needs a fix. However, this research is suggesting the system to make financial inclusion structure as effective, to fill the energy financing gap, for post-COVID-19 time, and to develop a viable and sustainable financing option for energy sector in long-run perspective. This study also validated the empirical role of financial inclusion on energy poverty and energy efficiency, with historical data, to justify the significance of financial inclusion for energy financing gap fulfillment. More so, this paper is also recommending new policy implications for the stakeholders to utilize. We believe if the recommended policy recommendations are considered for practice, the energy financing gap in post-COVID-19 era would be mitigated, and there is a high probability to supply the efficient energy to the end users.