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Energy technology innovation through the lens of the financial deepening: Financial institutions and markets perspective

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Abstract

This paper examines the impact of financial deepening on energy technology green innovation over the period 1996 to 2020. Utilizing the nonlinear QARDL technique, we assess the asymmetric short and long-term impacts across various quantiles. The research employs two measures of financial deepening, namely financial institution deepening (FID) and financial market deepening (FMD). The findings reveal that a positive change in the FID causes energy green innovation to rise, while a negative change in the FID causes energy green innovation to fall in the long run at most quantiles. Further, we find that the rise in the FMD help improves energy green innovation; however, the fall in the FMD does not significantly impact energy green innovation at all quantiles. Based on the findings, our research will help policymakers to develop valuable policies for financial deepening to enhance energy green innovation.

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Data availability

The datasets used and/or analyzed during the current study are available from the corresponding author on reasonable request.

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Authors and Affiliations

  1. School of Economics, Capital University of Economics and Business, Beijing, China

    Baodan Liu & Rui Hu

  2. Adnan Kassar School of Business, Lebanese American University, Beirut, Lebanon

    Sana Ullah

Authors
  1. Baodan Liu
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  2. Rui Hu
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  3. Sana Ullah
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Contributions

Baodan Liu: Idea, software, Methodology, Writing-Original draft preparation, Reviewing and Editing; Methodology; Rui Hu: Investigation, Reviewing and Editing; Sana Ullah: Conceptualization, Methodology, Writing-Original draft preparation.

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Correspondence to Rui Hu.

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Liu, B., Hu, R. & Ullah, S. Energy technology innovation through the lens of the financial deepening: Financial institutions and markets perspective. Environ Sci Pollut Res 30, 102271–102280 (2023). https://doi.org/10.1007/s11356-023-29416-6

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  • DOI: https://doi.org/10.1007/s11356-023-29416-6

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