Exploring the role of fintech development in bridging the gap between green energy transition,energy security,and energy poverty: Empirical investigation for BRI countries

Abstract

This study investigates the trade-off between green energy transition (GET) and energy security (ES) for eliminating energy poverty (EP) and the role of fintech development in 112 Belt and Road Initiative (BRI) countries from 2000 to 2022. To our knowledge, this is the first empirical study analyzing this nexus for BRI countries. BRI country's reliance on conventional non-renewable energy resources due to EP and modern energy inaccessibility is a question mark. Therefore, it is crucial to analyze whether ES assurance as a production-to-consumption ratio or transitioning to modern energy as green transition could benefit EP alleviation. Moreover, the role of fintech development is to strengthen the relationship between GET, ES, and EP eradication. Considering these important but ignored aspects in existing literature, the present study focused on filling this gap. Estimates from panel quantiles indicate that GET and ES both are significant for EP alleviation but the magnitude of GET is higher in comparison with ES. After applying robust estimates, the conclusion remains the same. Our study further examined the moderating role of fintech development between GET, ES, and EP. Findings confirmed that fintech development is a strong moderator between selected variables. Based on these findings, our study suggests that transitioning to green energy is optimal for EP reduction rather than focusing energy production on consumption patterns. This study further recommends improving fintech services because it strengthens the relationship between GET and EP alleviation.