Effect of green technological innovation and financial development on green energy transition in N-11 countries: Evidence from the novel Method of Moments Quantile Regression

The N-11 nations have achieved notable economic advancements, although they have had difficulties in attaining environmental sustainability and carbon neutrality objectives. Many studies have neglected the eco-environmental determinants that hinder the pace of environmental sustainability. This study aims to examine the interconnections between green technological innovation, financial development and green energy transition in N-11 nations from 1997 to 2020. The empirical outcomes of the Method of Moments Quantile Regression (MMQR) indicate that innovation in green technologies has a beneficial impact on the shift towards green energy transition across all quantiles. Moreover, the research reveals a positive correlation between financial development and green energy transition across all quantiles (0.1–0.9). Nevertheless, the exhaustion of natural resources presents a formidable obstacle to this shift. Finally, the analysis reveals high inflation rates may impede the effective adoption of green energy practices. To enhance the reliability of the results obtained using the MMQR approach, we also utilize the Fully Modified OLS (FM-OLS), Dynamic OLS (D-OLS), and Canonical Cointegrating Regression (CCR) models. The results have been verified, demonstrating their resilience. This study's findings help policymakers to understand the importance of financial development and green technology for achieving carbon neutrality goals by 2050.