Green financing role on renewable energy dependence and energy transition in E7 economies

Abstract

The study aims to inquire how green financing influence renewable energy dependence and renewable energy transition in E7 settings. For this, the DEA estimation approach is used. The findings shown that renewable energy dependence is vital to efficiently extending energy transition in E7 context. More specifically, for renewable energy transition, renewable energy demand and supply ratio, energy consumption to GDP ratio, energy production elasticity, energy consumption elasticity, energy conversion efficiency and R & D investment through green financing are very essential. The findings further explained that there is 5% variance in China, 17% variance persisting in India, 11% variance in Turkey, 7% variance in Russia, 18.6% variance in Mexico and 3.1% per cent variance in Indonesia on a per annum basis for investing green finances in the renewable energy sector for energy transition. Study findings also indicated the E7 economies generated a 24% shift in the study period towards renewable energy from traditional energy production and consumption sources. By this, a significant rise on renewable energy dependence is observed. And it is due to green finance utilization in numerous hydro energy plants residing in E7 countries. The study is novel in its framework and the context. Though past researchers inquired how green finances is linked with economic performance, energy innovation, environmental sustainability and renewable energy sources, the issue has not been investigated based on how the renewable energy dependence generates a shift due to green financing, and how it promotes renewable energy transition in E7 economies as addresed by this research. By this the study is novel and suggests the practical recommendations to initiate effective renewable energy management system in E7 settings.