Do various financial resources ensure renewable energy production and environmental protection in OECD countries:...

The recent global energy crisis scenario echoes the past, and the vulnerability of traditional fuels remains the proximate cause of environmental degradation. The fundamental changes in mobilising finance resources are predominant in an energy transition. So, acknowledging finance and energy transition via financial and environmental technology is necessary to meet sustainable development goals. Accordingly, this study employs panel econometric models to investigate how financial resources can ensure the production of renewable energy and environmental protection in 38 OECD member nations over a time period from 2000 to 2021. The empirical finding shows that foreign direct investment and financial technology ameliorate environmental performance by alleviating CO₂ emissions. Environmental technologies positively impact environmental protection by eliminating CO₂ emissions. The financial resources ensure renewable energy production and environmental protection by reducing the environmental externalities and encouraging renewable energy consumption. Similarly, the consumption of renewable energy catalyses environmental improvement. Economic globalisation spurs environmental externalities. The D-H causality test also shows a reciprocal movement from environmental performance to financial technology, environmental technology and renewable energy consumption. The study's outcomes offer a new model of insight for governments as well as financial and energy policymakers to protect the environment. Enable sustainable development in OECD countries by empowering financial innovation through fintech and incentivising environmental technology to increase renewable energy production.