Evaluating the trilemma nexus of digital finance, renewable energy consumption, and CO(2) emission: evidence from nonlinear ARDL model

It has been established in 2030 sustainability objectives as per SDGs that highlight the critical importance of access to affordable, renewable energy, robust, long-term industrial progress, and digital financing in CO(2) emission. The intent of study is to test the trilemma nexus between digital finance, renewable energy consumption, and carbon emission reduction with nonlinear ARDL tests. The study acquired the data and applied the nonlinear ARDL test, split analysis tests, and vector-error correction model (VECM) tests. The results of the study highlighted that the increase of digital finance positively enhances the renewable energy and negatively reduces the CO(2) emissions which we calculate to be 11.4% of the digital finance funding on renewable energy goods. For this, a 39% increase in digital financing is noticed by the research findings during the COVID-19 crisis period. Such robust study findings present the latest insights that digital financing is an eminent and viable source of financing for the trilemma nexus with renewable energy consumption and the CO(2) emissions. Following these, multiple research implications are also presented for the key stakeholders.