How Fintech and effective governance derive the greener energy transition: Evidence from panel-corrected standard errors approach

Abstract

Over the past few years, energy transition is emerging and debatable concern for economies especially targeting net zero carbon emissions. Despite of huge literature on energy transition, still limited studies have taken in account the role of fintech and government effectiveness in altering energy transition. This study valuably adds to empirical literature by examining the role of fintech and government effectiveness in energy transition. To fulfil this purpose, panel data of 91 middle income countries has been taken in paper that ranges from 2000 to 2020. The study is based on Driscoll and Kraay's approach of Panel Corrected Standard Error. The computed outcomes reported that fintech positively determines middle-income countries' energy transition. Also the study revealed that government effectiveness plays a constructive role in the energy transition to renewable energy sources. Furthermore, the analysis also confirmed the significant potential role of economic growth, industry value added, urbanization, and foreign direct investment in the energy transition in the selected sample. The study analysis sets down the practical implication in formulating energy transition policies for policymakers and to target net zero carbon emissions.