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Technology-society nexus in post-COP 27 era: How digital innovation, energy transition, and green finance drive net-zero pathways in OECD countries

Author

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  • Zaman, Mubasher
  • Ullah, Atta
  • Qin, Quande
  • Kashif, Muhammad

Abstract

Eco-friendly green investments in digital technologies and renewable energy transition harmonized with climate policies are essential to achieving the net-zero carbon objective post-27th conference of the parties (COP-27). This research provides new policy implications on the technology-society nexus, analyzing data on energy transition, green finance, digital innovation, and carbon emissions in 37 OECD countries during 2000–2022, which is shaped by emerging climate policies. Utilizing a novel Method of Moments Quantile Regression (MMQR), robust through fully-modified OLS, bootstrap quantile regression, and Driscoll-Kraay fixed effects model, the study offers assistance in the transition towards a low-carbon society. It reveals that energy transition and green finance have a significantly negative effect on carbon emissions in all the quantiles. Digital innovation cuts carbon emissions very significantly up to the 0.60 quantile, and has no significant influence for higher quantiles, suggesting mixed/diverse technological impacts in various social settings. However, digital innovation moderates with energy transition (ETI × DIN) and significantly diminishes carbon emissions across all quantiles. Additionally, social inequality and economic growth hurt environmental health by increasing carbon emissions. Further, the D-H causality test reports both unidirectional and bidirectional relationships between the variables. Policymakers should formulate strategies that align with socially inclusive initiatives, enhance eco-oriented investments in digital technologies and renewable energy transition to implement zero-carbon policies and socio-technical strategies into climate frameworks, advancing the Sustainable Development Goals 7, 9, 13, and COP-27 commitments.

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  • Zaman, Mubasher & Ullah, Atta & Qin, Quande & Kashif, Muhammad, 2026. "Technology-society nexus in post-COP 27 era: How digital innovation, energy transition, and green finance drive net-zero pathways in OECD countries," Energy Policy, Elsevier, vol. 210(C).
    • Handle: RePEc:eee:enepol:v:210:y:2026:i:c:s030142152500552x
    DOI: 10.1016/j.enpol.2025.115045
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