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Do financial inclusion, inclusive digitalization and growth promote clean energy portfolio?

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Abstract

Renewable energy is distinct from fossil fuels since it does not contribute to global warming or air pollution. Advancements in technology make it essential to investigate various facets of digitalization in the energy sector to innovate renewable energy sources. In addition, a stable financial system is essential for doing all this. Kee** this in mind. In this context, this paper analyzes the impact of inclusive digitalization, financial inclusion and inclusive growth on renewable energy demand for the period 2004 to 2022, in 103 countries. We categorize the sample into low-income, middle-income, and high-income countries to address the issue of heterogeneity. For panel data that can withstand the problem of cross-sectional dependency, the regression with panel-corrected standard errors (PCSE) is used in this study. The results indicate that inclusive digitalization, financial inclusion, and inclusive growth have a positive effect on renewable energy demand across all income groups, while inclusive growth has no effect on renewable energy demand in middle-income countries. Almost all of the variables are shown to have bi-causal links, as shown by the Dumitrescu and Hurlin-Granger causality test. Our findings point to concrete policy implications for countries looking to increase clean energy, sophisticated digital infrastructure, and an enhanced financial system.

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Funding

This study was funded by the Key Project of Philosophy and Social Science Research in Colleges and Universities in Jiangsu Province [Grant: 2021SJZDA139].

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Authors and Affiliations

  1. School of Finance and Economics, Jiangsu University, Zhenjiang, People’s Republic of China

    Muhammad Ramzan, Yao Hong**ng & Qamar Abbas

  2. Zhou En Lai School of Government, Nankai University, Tian**, People’s Republic of China

    Sumbal Fatima

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  1. Muhammad Ramzan
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  2. Yao Hong**ng
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  3. Qamar Abbas
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Contributions

The idea for the current paper was presented by MR, who, with the help of the remaining co-authors, accomplished this manuscript. QA helped with conceptualization, data collection, and formal analyses. Prof. YH supervised aspects of the manuscript, such as the selection of relevant methodologies and funding acquisition. SF helped with the writing, reviewing, and editing of the current manuscript.

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Correspondence to Yao Hong**ng.

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Appendix

Appendix

See Tables 10, 11, 12, 13

Table 10 List of Countries
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Table 11 Index for inclusive digitalization
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Table 12 Index for financial inclusion
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Table 13 Index for inclusive growth
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Ramzan, M., Hong**ng, Y., Abbas, Q. et al. Do financial inclusion, inclusive digitalization and growth promote clean energy portfolio?. Clean Techn Environ Policy (2024). https://doi.org/10.1007/s10098-023-02722-w

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