The socio-economic and technological dimensions of energy transition: Do financial mechanisms enhance renewable energy generation?

The transition to renewable energy generation (REG) is a critical priority for emerging economies aiming to meet the 2030 Sustainable Development Goals. This study investigates the key drivers of REG across the MINT countries (Mexico, Indonesia, Nigeria, and Turkey) using a multidimensional framework that integrates socio-economic factors, financial mechanisms, and technological enablers. Employing advanced panel estimation techniques, including Cross-Sectionally Augmented Autoregressive Distributed Lag (CS-ARDL), Dynamic Common Correlated Effects (DCCE), and Augmented Mean Group (AMG) estimators, the analysis covers the period from 1995 to 2022. The results revealed that while economic growth significantly promotes REG, trade openness and unemployment are negatively associated with clean energy advancement. In the financial dimension, both green finance and financial development support REG, whereas foreign direct investment exerts an inverse effect. Technological innovation, information and communication technology (ICT), and the digital economy are identified as key accelerators of REG progress. This study advances energy transition theory by integrating multidimensional drivers, socio-economic, financial, and technological factors into a unified empirical framework for emerging economies. These findings underscore the need for an integrated policy framework that simultaneously strengthens macroeconomic structures, enhances green financing systems, and promotes technological innovation to facilitate an inclusive and sustainable clean energy transition in emerging markets. • GDP boosts REG; unemployment and trade openness hinder clean energy progress. • Green finance improves REG, but FDI shows adverse effects on energy adoption. • Innovation, ICT, and digital economy are crucial for expanding REG. • A multidimensional model reveals key drivers of renewable energy growth.