ICT, Financial Development and Renewable Energy Consumption

This study examines the relationships between ICT (information and communication technology), financial development, and renewable energy consumption using data from a panel of 35 countries during the 1996–2018 period. The results from the moderating effect and panel threshold models suggest the following outcomes. (i) Both ICT and financial development promote renewable energy consumption. (ii) ICT moderates the relationship between financial development and renewable energy consumption. (iii) The relationship between financial development and renewable energy consumption has a significant threshold effect when ICT is used as the threshold variable, such that increasing ICT enhances the promoting effect of financial development on renewable energy consumption. (iv) Economic development, trade openness, and urbanization positively affect renewable energy demand during the sample period, whereas environmental deterioration and technological progress do not promote renewable energy consumption. Therefore, when formulating policies for renewable energy development, governments should strengthen the integration of ICT with financial development.