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Digital financial inclusion, the belt and road initiative, and the Paris agreement: Impacts on energy transition grid costs

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  • Chishti, Muhammad Zubair
  • Xia, Xiqiang
  • Du, Anna Min
  • Özkan, Oktay

Abstract

We investigate how digital financial inclusion, the Belt and Road Initiative, and the Paris Agreement influence the energy transition grid cost. We propose two new Kendall and Spearman wavelet cross-quantile correlation methods and utilize data from June 1, 2018, to July 31, 2024. Our findings indicate that digital financial inclusion, the Paris Agreement, and artificial intelligence significantly reduce grid costs in the short and long run. Additionally, the Belt and Road Initiative has substantial potential to decrease grid costs, particularly during bullish market conditions in the long run. Conversely, GCOVOL significantly increases grid costs, especially in the long run.

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  • Chishti, Muhammad Zubair & Xia, Xiqiang & Du, Anna Min & Özkan, Oktay, 2025. "Digital financial inclusion, the belt and road initiative, and the Paris agreement: Impacts on energy transition grid costs," Finance Research Letters, Elsevier, vol. 72(C).
    • Handle: RePEc:eee:finlet:v:72:y:2025:i:c:s1544612324015460
    DOI: 10.1016/j.frl.2024.106517
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    2. Dong, Qiutong & Balsalobre-Lorente, Daniel & Syed, Qasim Raza, 2025. "The critical role of financial inclusion in green growth: Evidence from BRICS countries," Research in International Business and Finance, Elsevier, vol. 76(C).

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