The role of green finance in energy transition: Regional variations and the moderating impact of women political participation

Using panel data from South, Southeast, and Central Asia over the period 2000–2022, this study examines how green finance impacts energy transition, with a special focus on the role of women's political participation as a moderating factor. Employing econometric and partial linear function coefficients (PLFC) models, the results show that green finance significantly promotes energy transition by enhancing digital technology innovation and improving financial resource allocation. Heterogeneity analysis reveals that the impact of green finance is stronger in regions with higher urbanization, greater foreign direct investment (FDI), larger labor forces, and more developed internet infrastructure. The study also highlights the non-linear moderating effect of women political participation on the green finance-energy transition relationship. Specifically, when women political participation is low, green finance has limited or even adverse effects on carbon emissions, while higher women participation enhances the effectiveness of green finance in reducing carbon emissions. The results highlight the importance of gender-inclusive policies in decision-making to enhance the role of green finance in driving energy transition. This study provides useful recommendations for policymakers in the region.