Fintech or Government Effectiveness? Renewable Energy Transition in Asia

Abstract

Fintech and government effectiveness are encouraged to be considered in the campaign towards renewable energy transition. However, the literature on these factors is tilted towards their impact on carbon emissions and less on fintech and energy transition. To address this significant gap in the literature, this current study employs the Cross-Sectional Autoregressive Distributed Lag (CS-ARDL) to estimate the influence of fintech and government effectiveness on renewable energy transition and carbon emissions in selected Asian countries. The results reveal that in the long and short terms, government effectiveness encourages the transition to renewable energy; however, government effectiveness effect on carbon emissions is insignificant in both terms. Nevertheless, fintech is statistically not significant in affecting the renewable energy transition and carbon emissions. Based on the study findings, it is recommended that a strong governance system is required to achieve a clean energy transition.