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Do FinTech trigger renewable energy use? Evidence from OECD countries

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  • Croutzet, Alexandre
  • Dabbous, Amal

Abstract

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.

Suggested Citation

  • Croutzet, Alexandre & Dabbous, Amal, 2021. "Do FinTech trigger renewable energy use? Evidence from OECD countries," Renewable Energy, Elsevier, vol. 179(C), pages 1608-1617.
    • Handle: RePEc:eee:renene:v:179:y:2021:i:c:p:1608-1617
    DOI: 10.1016/j.renene.2021.07.144
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    More about this item

    Keywords

    FinTech; Renewable energy; Panel data;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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