Path to Green Prosperity : Evaluating the Interconnected Factors of Industry, Finance, and Energy in Developing Economies

Authors

  •   Arya Kumar Assistant Professor (II), Department of Commerce, Kalinga Institute of Industrial Technology, (KIIT) Deemed to be University, Patia, Bhubaneswar - 751 024, Odisha. & Research Fellow, Faculty of Business and Communications, INTI International University, Negeri Sembilan, Malaysia - 71800
  •   Mousumi Dash Ph.D. Research Scholar (Corresponding Author), Department of Commerce, Kalinga Institute of Industrial Technology, (KIIT) Deemed to be University, Patia, Bhubaneswar - 751 024, Odisha
  •   Anuj Kumar Head of Research, Rushford Business School, Maihofstrasse 76, 6006, Lucerne, Switzerland. & Research Fellow, INTI International University, Negeri Sembilan, Malaysia - 71800
  •   Sweta Leena Hota Assistant Professor (II), Department of Commerce, Kalinga Institute of Industrial Technology, (KIIT) Deemed to be University, Patia, Bhubaneswar - 751 024, Odisha
  •   Debashisa Mohanty Head of the Department, Department of Management, College of IT and Management Education, Zone-B, Plot No.4, Mancheswar IE Rd, Sector A, Bhubaneswar, Odisha - 751 010
  •   Asokan Vasudevan Professor, Faculty of Business and Communications, INTI International University, Negeri Sembilan, Malaysia - 71800

DOI:

https://doi.org/10.17010/pijom/2024/v17i12/174056

Keywords:

dynamic model

, renewable energy, financial development, industrialization, greenhouse.

JEL Classification Codes

, O16, Q43, Q56

Paper Submission Date

, May 16, 2024, Paper sent back for Revision, August 16, Paper Acceptance Date, October 15, Paper Published Online, December 15, 2024

Abstract

Purpose : The transition to renewable energy is essential for sustainable economic growth and environmental stability, and understanding the role of financial development (FD) in facilitating this shift is critical. This study investigated the impact of FD on renewable energy consumption across 101 economies, with a focus on the role of financial institutions.

Design/Methodology/Approach : The study used a dynamic panel model to investigate the association between renewable energy consumption and FD in 101 economies. The model included these three variables to evaluate the influence of essential factors (market access, market efficiency, and financial institutions) on renewable energy increase.

Findings : The findings revealed a positive correlation between renewable energy consumption in developed nations and FD, while the association was not statistically significant in developing economies. Financial institutions, especially banks, played a crucial role in enhancing renewable energy consumption, with factors such as accessibility, efficiency, and vertical cohesiveness of financial markets significantly influencing renewable energy adoption. The results also highlighted the practical implications of FD on renewable energy uptake, indicating that an approximate 0.01244 increase in renewable energy uptake corresponded to a per unit increase in the financial development index.

Practical Implications : Governments could target establishing renewable energy funds and provide tax incentives to financial institutions to leverage financial institutions for renewable energy harnessing.

Originality/Value : The research contributed to the existing literature by providing a comprehensive analysis of the relationship between FD and renewable energy adoption, emphasizing the crucial role of financial institutions in promoting sustainable energy practices.

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Published

2024-12-15

How to Cite

Kumar, A., Dash, M., Kumar, A., Hota, S. L., Mohanty, D., & Vasudevan, A. (2024). Path to Green Prosperity : Evaluating the Interconnected Factors of Industry, Finance, and Energy in Developing Economies. Prabandhan: Indian Journal of Management, 17(12), 46–63. https://doi.org/10.17010/pijom/2024/v17i12/174056

Issue

Volume 17, Issue 12, December 2024

Section

Articles
Crossref
Scopus
Google Scholar
Europe PMC

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