Using green finance to study energy elasticity, coal subsidy, energy transition and energy dependence in E7 economies: an efficiency analysis with data envelopment analysis

Abstract

The inquiry examines the data envelopment analysis based efficiency analysis among green finance, energy transition, coal subsidy, energy elasticity and energy dependence in E7 economies. Accordingly, the research used E7 countries' data from 2010 to 2019 and examined the results with the data envelopment analysis (DEA) technique. The results highlighted the need to employ green financing and coal subsidy sources to effectively extend the energy transition and unlock energy dependence from fossil fuels towards renewables. The results explained that green financing and coal subsidies significantly extend energy transition and ensure elasticity in energy dependence. More specifically, China's yearly variation in green financial investment in the renewable energy sector for energy transition was 5 %, India's was 17 %, Turkey's was 11 %, Russia's was 7 %, Mexico's was 18.6 %, and Indonesia's was 3.1 %. The E7 economies switched from conventional energy production and consumption habits by 24 % throughout the studied period. As a result, there has been a dramatic increase in the usage of green energy. The E7 countries' confidence in green financing via coal subsidies for their many hydropower facilities makes this a reality, enhancing energy elasticity in the systems. This research is innovative on both a theoretical and empirical level. Based on the findings, the study declared different policy actions for the regulators to implement and foster a prudent renewable energy strategy to achieve sustainability.