The Impact of Fintech, Green Finance, and Financial Inclusion on Energy Efficiency and Sustainability in GCC Countries

Abstract

Due to the rapid emergence of financial factors as well as the sustainable development goals of energy efficiency, this research focuses on finding if financial factors can have a major impact on energy effciency.The growing concern of environmental problems that are directly related to energy production and consumption include climate change. The methods the GCC countries are moving to use to reduce the consumption of energy, is through financial factors. The GCC is also seeking to lessen the reliance on oil dependency. This aligns with the sustainable development goals of the UN (united Nation), which is the global organization that the GCC is part of. This research will study if financial factors can influence energy efficiency. The method used to test the relationship is the Multiple linear regression model. Specifically, this method was chosen as there are seven independent variables and one dependent variable. A statistical software, EViews, was used to conduct different tests such as a unit root and Panel regression analysis. Tests were performed to see if the dependent variable, Energy intensity can be influenced by different variables of financial factors. The fixed effect model and Histograms were used to represent the level of distribution of the skewness and kurtosis as well as the impact of each variable. The results concluded that while it might be possible to have an influence, these financial factors showed a low effect on the size of impact.