Research on the impact of green finance and renewable energy on energy efficiency: The case study E−7 economies

This study analyzes the impact of green finance and renewable energy on energy efficiency in E−7 economies. We analyzed the nonlinear and asymmetric effects of green finance and renewable energy on energy efficiency. We collected data from 1985 to 2017 and applied the NARDL and 2SLS methods. The results reveal that the differences in green finance development in the E−7 region are as follows: China (0.61), Brazil (0.55), India (0.53), Indonesia (0.49), Mexico (0.37), and Russia (0.39). In 2019, the Gini coefficient was the largest in Russia (0.57), followed by Turkey. Based on empirical findings, the largest barrier to green energy efficiency is insufficient private and governmental investment in the energy sector to improve access to power, to increase energy security and promote economic growth in an environmentally sustainable manner. The findings point to a promising but vulnerable future for renewable energy and energy efficiency deployment in E−7 countries. This paper emphasizes that green financing and renewable energy policy limitations must be addressed to realize the funding potential of energy efficiency in E−7 countries.