Financial development stages and energy efficiency: Mediating roles of renewable energy and moderating effect of green finance and FDI

Hira Khan; Wasim Abbas Shaheen; Syed Kashan Toqeer; Waqas Ahmed

doi:10.71085/sss.05.01.454

Authors

Hira Khan M. Phil Scholar, Quaid-i-Azam School of Management Sciences, Quaid-i-Azam University, Islamabad, Pakistan
Wasim Abbas Shaheen Assistant Professor, Quaid-i-Azam School of Management Sciences, Quaid-i-Azam University, Islamabad, Pakistan
Syed Kashan Toqeer BS in International Relations, School of Politics and International Relations, Quaid-i-Azam University, Islamabad, Pakistan
Waqas Ahmed M. Phil Scholar, Quaid-i-Azam School of Management Sciences, Quaid-i-Azam University, Islamabad, Pakistan

DOI:

https://doi.org/10.71085/sss.05.01.454

Keywords:

Green Finance, Energy Efficiency, Financial Development, Foreign Direct Investment, Economic Growth, Renewable Energy Use

Abstract

The study about modelling aims to comprehend how renewable energy use mediates the effects of foreign direct investment, green finance, economic growth, natural resources rent, international trade, and urbanization on energy efficiency while examining the moderation of financial development by employing a two-stage moderated mediation model in the particular case of 79 nations, covering the twenty-one years 1999-2019. We obtained data from the World Bank (2022) and the OECD (2022). The findings show that Difference GMM proves the presence of a conditional effect of FD on countries. The result of the second stage moderated mediation has a strongly significant impact. The study suggests that policymakers should concentrate their focus on Urbanization's adaptation to support the use of clean, renewable energy. Specific environmental rules may encourage associated businesses in economies to spend more on R&D to advance technology.