Are advancements in renewable energy technologies being driven by the digital economy and financial structure? An overview of the key eight nations

Abstract

This study addresses the critical need to understand how digital economy advancements and financial structures influence renewable energy technological innovations (RETI) in the eight major (M − 8) countries over the period from 2011 to 2022. Utilizing simultaneous quantile regression (SQR) and principal component analysis (PCA), the research aims to explore the dynamic relationship between RETI and the digital economy, with a focus on the mediating effects of financial and governance frameworks. The results reveal that a 1 % increase in the digital economy can lead to a 0.425 % boost in RETI development, while improvements in financial systems contribute an average of 1.396 % to RETI advancement. The study also highlights that the strength of these relationships varies across different quantiles, emphasizing the need for tailored policy interventions. These findings suggest that to effectively support the growth of RETI within the digital economy, it is crucial to implement reforms in economic and governance frameworks. The policy implications point to the importance of integrating financial and digital innovations in strategies aimed at fostering sustainable and innovative energy technologies in the M − 8 countries, guiding policymakers toward maximizing the convergence of these domains for a more sustainable future.