How Does Renewable Energy Production Respond to Digital Financial Inclusion and Education?

ABSTRACT Increasing renewable energy production is the best solution to combat global climate change and energy poverty. Investment possibilities in renewable energy are growing because of the financial sector's transition to digitalization, which significantly eases access to capital. However, the literature on the linkage between digital financial inclusion, education, and renewable energy production is scant. This analysis investigates the nexus between digital financial inclusion, education, and renewable energy production in the panel data of 40 top carbon emitter economies from America, Asia, and Europe using the 2SLS and GMM approaches. The results show the positive impact of digital financial inclusion on renewable energy production globally and in Asia, America, and Europe. However, education has a favorable role in renewable energy production globally and in all regions. Additionally, per capita income, R&D expenditures, environmental pressures, and trade are crucial in increasing renewable energy production. Thus, the government should increase digital financial infrastructure and human capital development to develop renewable energy.