Do FinTech trigger renewable energy use? Evidence from OECD countries

This study highlights the importance of financial technologies (FinTech) as a factor influencing renewable energy use across Organization for Economic Cooperation and Development (OECD) countries. Renewable energy development is motivated notably by reducing carbon dioxide emissions, growing energy security concerns, and oil price volatility. FinTech affects consumption, savings, and investment decisions in the renewable energy sector. Examples include cryptocurrencies such as NRGcoin, blockchain-based renewable energy certificates such as Origin from the Energy Web Foundation, and crowdfunding to raise funds for renewable energy projects. This study aims to quantitatively determine the influence of FinTech development on renewable energy consumption. To this end, it uses a balanced panel of 21 OECD countries for the period 2005-2018. The empirical model is estimated using the fixed-effects estimator with Driscoll-Kraay standard errors. The findings indicate the existence of a significant positive relation between FinTech development and renewable energy use. The results provide a platform for governments and policymakers to promote environmentally sustainable energy sectors by fostering and encouraging the use of FinTech. (c) 2021 Elsevier Ltd. All rights reserved.

Automated summary

This study highlights the importance of FinTech in influencing renewable energy use and finds a significant positive relationship between FinTech development and renewable energy consumption. The results provide a platform for governments and policymakers to promote environmentally sustainable energy sectors.