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Technology innovation, digital finance and renewable energy consumption: Evidence from China

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  • Chu, Chien-Chi
  • Narayan, Paresh Kumar
  • Ji, Yun

Abstract

This research analyzes the impact of technical innovation (TI) and digital finance (DF) on renewable energy consumption (REC) utilizing panel data from Chinese regions. Leveraging advanced econometric techniques such as FMOLS and DOLS, the findings indicate that both variables are statistically and economically important determinants of REC. TI as indicated by patent applications, demonstrates a significant positive impact, with a one standard deviation increase resulting in an approximate 6.75 % rise in REC relative to its sample mean. Likewise, DF substantially enhances REC, with a one standard deviation increase correlating to an 11.16 % increase in REC. These findings highlight the essential roles of innovation and financial digitization in enabling the energy transition. Policy initiatives aimed at enhancing technology research and development and fostering digital financial inclusion are crucial for expediting the deployment of renewable energy and attaining sustainable energy objectives.

Suggested Citation

  • Chu, Chien-Chi & Narayan, Paresh Kumar & Ji, Yun, 2025. "Technology innovation, digital finance and renewable energy consumption: Evidence from China," Energy Economics, Elsevier, vol. 150(C).
    • Handle: RePEc:eee:eneeco:v:150:y:2025:i:c:s0140988325005894
    DOI: 10.1016/j.eneco.2025.108762
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