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The Impact of Renewable Energy Consumption on Environmental Quality in Central European Countries: The Mediating Role of Digitalization and Financial Development

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  • Bartosz Jóźwik

    (Department of International Economics, The John Paul II Catholic University of Lublin, 20-950 Lublin, Poland)

  • Mesut Doğan

    (Department of Banking and Finance, Bilecik Seyh Edebali University, Bilecik 11300, Turkey)

  • Samet Gürsoy

    (Department of Customs Business Administration, Burdur Mehmet Akif Ersoy University, Burdur 15030, Turkey)

Abstract

Green initiatives and digital transitions in Central European countries are catalyzing significant transformations within the region’s socio-economic landscape, embedding contemporary technologies into daily life and commercial activities. Consequently, this fosters improved environmental quality through sustainable practices. This research unravels the complex interplay between renewable energy consumption, digitalization, and financial development in various national contexts, providing key insights into their respective and collective impacts on environmental quality. This study investigates the relationship among environmental quality, digitalization, renewable energy consumption, financial development, and economic growth in Central European countries, analyzing data from 1995 to 2019. An analysis of the panel data reveals a statistically significant positive relationship between economic growth and carbon emissions, and a negative relationship among digitalization, renewable energy consumption, and carbon emissions. In Central European nations, including the Czech Republic, Hungary, Latvia, and Slovakia, digitalization serves a mediating role in the relationship between renewable energy consumption and environmental quality. However, the role of financial development as a mediator between renewable energy consumption and environmental quality manifests varied impacts across different countries. These findings hold the potential to guide policy recommendations for the countries under consideration.

Suggested Citation

  • Bartosz Jóźwik & Mesut Doğan & Samet Gürsoy, 2023. "The Impact of Renewable Energy Consumption on Environmental Quality in Central European Countries: The Mediating Role of Digitalization and Financial Development," Energies, MDPI, vol. 16(20), pages 1-18, October.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:20:p:7041-:d:1257596
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    1. Florin Andrei, 2023. "Rethinking Economic Growth Policies in the Context of Sustainability: Panel Data Analysis on Pollution as an Effect of Economic Development in EU Countries," Sustainability, MDPI, vol. 15(22), pages 1-21, November.

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