Investigating the role of smart technologies, financial, and environmental innovations in tackling the ecological sustainability: a global pathway toward low carbon energy transition.

ABSTRACT

Since the beginning of the twenty-first century, the rapid development of modern technologies has brought unprecedented social prosperity to mankind as technologies penetrate every sector of the economy. These technologies have given a new dimension to the energy sector. The key purpose of this study is to investigate the crucial impact of technological revolutions, namely, smart grids, smart devices, financial innovations, and environmental innovations, on greenhouse gas emissions (GHGs). To this end, the study utilized data from European, Asian, Middle Eastern, and African countries and employed first- and second-generation methods, such as DOLS, FMOLS, and CS-ARDL models. The research shows that smart grids are the only factor in reducing GHGs, regardless of geographic division. Hence, linking smart grid resources to climate change goals requires short-term deployment strategies with a clear long-term vision and the fundamental goal of transforming the power structure into a net zero-emission system. The study also demonstrates that the emergence of ICT in electricity consumption has not yet reached a level that can promote environmental excellence. The study documented the critical role of financial innovation and environmental innovation in addressing environmental degradation.