Marketing and Management of Innovations

ISSN (print) – 2218-4511 

ISSN (online) – 2227-6718

Registered in the Media Registrants-Register

Identifier in the register: R30-01179 Decision dated August 31, 2023, No. 759

The language of publication is English. 

Issued 4 times a year (March, June, September, December) since 2010

Business Model: Golden Open Access | APC Policy

Editor-in-Chieff             View Editorial Board

Oleksii Lyulyov

Sumy State University | Ukraine

Innovations in the Energy Sector as a Powerful Catalyst for Financial Transformations

Wadim Strielkowski 1,*,  
  1. University of California, Berkeley, USA
  2. Czech University of Life Sciences, Prague, Czech Republic

     * Corresponding author

Received: 10 October 2023

Revised: 16 February 2024

Accepted: 13 March 2024

Abstract

Conventional wisdom often posits that financial innovations are the primary drivers of energy transitions, facilitating the shift from traditional fossil fuels to renewable sources. However, a nuanced examination of this relationship suggests a reciprocal dynamic where innovations in the energy sector can significantly propel financial transformations. The global pivot towards renewable energy sources necessitates substantial financial investments, thus catalyzing the emergence of novel financial instruments, green bonds, and innovative financing models dedicated to supporting the renewable energy sector. This interdependence between energy transitions and financial innovation reflects the adaptability of financial institutions to the evolving demands of sustainable energy initiatives. As societies increasingly embrace cleaner energy solutions, the financial sector responds by devising inventive strategies to underwrite these transitions. Highlighting the growing academic interest in this symbiotic relationship, the number of publications on energy transitions and financial innovations indexed in the Web of Science database has witnessed a remarkable increase from a mere 10 in 2015 to 113 in 2023, indicating a rapidly increasing field of academic research. This paper presents a comprehensive bibliometric analysis of the existing research literature on the interplay between energy transition and financial innovations. Utilizing a network analysis approach and the VOSviewer software – a tool renowned for its efficacy in uncovering prevailing trends and patterns in interdisciplinary research – the study aims to map out the intellectual landscape of this domain. Our findings elucidate that energy transitions do not merely benefit from financial innovations but can also act as potent drivers of financial change, as evidenced by numerous recent and historical examples. This reciprocal influence underscores the critical role of energy sector advancements in shaping financial practices and instruments. The study’s insights contribute significantly to the understanding of how energy transitions and financial innovations mutually reinforce each other, providing valuable implications for policymakers, investors, and researchers focused on fostering sustainable energy ecosystems and financial market resilience.

Keywords: energy innovations; sustainable development; renewable energy; green finance; financial innovations.

How to Cite: Strielkowski, W. (2024). Innovations in the Energy Sector as a Powerful Catalyst for Financial Transformations. Marketing and Management of Innovations, 15(1), 131–142. https://doi.org/10.21272/mmi.2024.1-11

Abstract Views

PDF Downloads

References

  1. Accominotti, O., & Ugolini, S. (2020). International trade finance from the origins to the present: market structures, regulation and governance, arXiv preprint, arXiv, 2009.08668. [Google Scholar] [CrossRef]
  2. Afshan, S., Ozturk, I., & Yaqoob, T. (2022). Facilitating renewable energy transition, ecological innovations and stringent environmental policies to improve ecological sustainability: evidence from MM-QR method. Renewable Energy, 196, 151–160. [Google Scholar] [CrossRef]
  3. Barca, S. (2011). Energy, property, and the industrial revolution narrative. Ecological Economics, 70(7), 1309–1315. [Google Scholar][CrossRef]
  4. Bhutta, U. S., Tariq, A., Farrukh, M., Raza, A., & Iqbal, M. K. (2022). Green bonds for sustainable development: Review of literature on development and impact of green bonds. Technological Forecasting and Social Change, 175, 121378. [Google Scholar] [CrossRef]
  5. Bogdanov, D., Ram, M., Aghahosseini, A., Gulagi, A., Oyewo, A. S., Child, M., & Breyer, C. (2021). Low-cost renewable electricity as the key driver of the global energy transition towards sustainability. Energy, 227, 120467. [Google Scholar] [CrossRef]
  6. Cantarero, M. M. V. (2020). Of renewable energy, energy democracy, and sustainable development: A roadmap to accelerate the energy transition in developing countries. Energy Research & Social Science, 70, 101716. [Google Scholar] [CrossRef]
  7. Cassis, Y. (2010). Capitals of capital: the rise and fall of international financial centres 1780-2009. Cambridge: Cambridge University Press. [Link]
  8. Cortellini, G., & Panetta, I. C. (2021). Green bond: A systematic literature review for future research agendas. Journal of Risk and Financial Management, 14(12), 589. [Google Scholar] [CrossRef]
  9. Croutzet, A., & Dabbous, A. (2021). Do FinTech trigger renewable energy use? Evidence from OECD countries. Renewable Energy, 179, 1608–1617. [Google Scholar] [CrossRef]
  10. Du, J., Shen, Z., Song, M., & Vardanyan, M. (2023). The role of green financing in facilitating renewable energy transition in China: Perspectives from energy governance, environmental regulation, and market reforms. Energy Economics, 120, 106595. [Google Scholar][CrossRef]
  11. Dunz, N., Naqvi, A., & Monasterolo, I. (2021). Climate sentiments, transition risk, and financial stability in a stock-flow consistent model. Journal of Financial Stability, 54, 100872. [Google Scholar] [CrossRef]
  12. ENFIN (2023). Energy Transitions and the Rise and Fall of Great Financial Centersю [Link]
  13. Grijalvo, M., & García-Wang, C. (2023). Sustainable business model for climate finance. Key drivers for the commercial banking sector. Journal of Business Research, 155, 113446. [Google Scholar] [CrossRef]
  14. Hailiang, Z., Iqbal, W., Yin Chau, K., Raza Shah, S. A., Ahmad, W., & Hua, H. (2023). Green finance, renewable energy investment, and environmental protection: empirical evidence from BRICS countries. Economic research, 36(2), 2125032. [Google scholar] [CrossRef]
  15. Hassan, Q., Viktor, P., Al-Musawi, T. J., Ali, B. M., Algburi, S., Alzoubi, H. M., & Jaszczur, M. (2024). The renewable energy role in the global energy Transformations. Renewable Energy Focus, 48, 100545. [Google Scholar] [CrossRef]
  16. Hezam, I. M., Mishra, A. R., Rani, P., Cavallaro, F., Saha, A., Ali, J., Strielkowski, W., & Štreimikienė, D. (2022). A hybrid intuitionistic fuzzy-MEREC-RS-DNMA method for assessing the alternative fuel vehicles with sustainability perspectives. Sustainability, 14(9), 5463. [Google Scholar] [CrossRef]
  17. Hoicka, C. E., Lowitzsch, J., Brisbois, M. C., Kumar, A., & Camargo, L. R. (2021). Implementing a just renewable energy transition: Policy advice for transposing the new European rules for renewable energy communities. Energy Policy, 156, 112435. [Google Scholar] [CrossRef]
  18. IRENA (2020). Energy Transformation Can Create More than 40 m Jobs in Renewable Energy. [Link]
  19. JI, M., & Zhang, X. (2023). Assessing the impacts and mechanisms of green bond financing on the enhancement of green management and technological innovation in environmental conservation enterprises. Journal of the Knowledge Economy, 31, 10032–10044. [Google Scholar][CrossRef]
  20. Jiang, Z., Lyu, P., Ye, L., & Wenqian Zhou, Y. (2020). Green innovation transformation, economic sustainability and energy consumption during China’s new normal stage. Journal of Cleaner Production, 273, 123044. [Google Scholar] [CrossRef]
  21. Kalair, A., Abas, N., Saleem, M. S., Kalair, A. R., & Khan, N. (2021). Role of energy storage systems in energy transition from fossil fuels to renewables. Energy Storage, 3(1), e135. [Google Scholar] [CrossRef]
  22. Kennedy, C. A. (2023). Biophysical economic interpretation of the Great Depression: A critical period of an energy transition. Journal of Industrial Ecology, 27(4), 1197–1211. [Google Scholar] [CrossRef]
  23. Kuzmin, E., Vlasov, M., Strielkowski, W., Faminskaya, M., & Kharchenko, K. (2023). Human capital in the sustainable economic development of the energy sector, arXiv preprint, arXiv, 2312.06450. [Google Scholar] [CrossRef]
  24. Le Billon, P., & Kristoffersen, B. (2020). Just cuts for fossil fuels? Supply-side carbon constraints and energy transition. Environment and Planning A: Economy and Space, 52(6), 1072–1092. [Google Scholar] [CrossRef]
  25. Li, M., Hamawandy, N. M., Wahid, F., Rjoub, H., & Bao, Z. (2021). Renewable energy resources investment and green finance: Evidence from China. Resources Policy, 74, 102402. [Google Scholar] [CrossRef]
  26. Liu, H., Yao, P., Latif, S., Aslam, S., & Iqbal, N. (2022). Impact of Green financing, FinTech, and financial inclusion on energy efficiency. Environmental Science and Pollution Research, 29, 18955–18966. [Google Scholar] [CrossRef]
  27. Luderer, G., Madeddu, S., Merfort, L., Ueckerdt, F., Pehl, M., Pietzcker, R., & Kriegler, E. (2022). Impact of declining renewable energy costs on electrification in low-emission scenarios. Nature Energy, 7(1), 32–42. [Google Scholar] [CrossRef]
  28. Miller, M. B. (2012). Europe and the maritime world: A twentieth-century history. Cambridge: Cambridge University Press. [Link]
  29. Moe, E. (2010). Energy, industry and politics: Energy, vested interests, and long-term economic growth and development. Energy, 35(4), 1730–1740. [Google Scholar] [CrossRef]
  30. Muratori, M., Alexander, M., Arent, D., Bazilian, M., Cazzola, P., Dede, E. M., & Ward, J. (2021). The rise of electric vehicles—2020 status and future expectations. Progress in Energy, 3(2), 022002. [Google Scholar] [CrossRef]
  31. Ng, A. W., Nathwani, J., Fu, J., & Zhou, H. (2021). Green financing for global energy sustainability: prospecting transformational adaptation beyond Industry 4.0. Sustainability: Science, Practice and Policy, 17(1), 377–390. [Google Scholar] [CrossRef]
  32. Onifade, S. T., & Alola, A. A. (2022). Energy transition and environmental quality prospects in leading emerging economies: the role of environmental‐related technological innovation. Sustainable Development, 30(6), 1766–1778. [Google Scholar] [CrossRef]
  33. Osman, A. I., Chen, L., Yang, M., Msigwa, G., Farghali, M., Fawzy, S., & Yap, P. S. (2023). Cost, environmental impact, and resilience of renewable energy under a changing climate: a review. Environmental Chemistry Letters, 21(2), 741–764. [Google Scholar] [CrossRef]
  34. Ostergaard, P. A., Duic, N., Noorollahi, Y., Mikulcic, H., & Kalogirou, S. (2020). Sustainable development using renewable energy technology. Renewable Energy, 146, 2430–2437. [Google Scholar] [CrossRef]
  35. Polzin, F., & Sanders, M. (2020). How to finance the transition to low-carbon energy in Europe? Energy Policy, 147, 111863. [Google Scholar][CrossRef]
  36. Qadir, S. A., Al-Motairi, H., Tahir, F., & Al-Fagih, L. (2021). Incentives and strategies for financing the renewable energy transition: A review. Energy Reports, 7, 3590–3606. [Google Scholar] [CrossRef]
  37. Rzayeva, U., Guliyeva, A., & Jafarova, N. (2021). Analysis of some indicators by means of fuzzy logic on the example of Azerbaijani energy enterprises. E3S Web of Conferences, 250, 02001. [Google Scholar] [CrossRef]
  38. Saadaoui, H., & Chtourou, N. (2023). Do institutional quality, financial development, and economic growth improve renewable energy transition? Some Evidence from Tunisia. Journal of the Knowledge Economy, 14(3), 2927–2958. [Google Scholar] [CrossRef]
  39. Sadiq, M., Amayri, M. A., Paramaiah, C., Mai, N. H., Ngo, T. Q., & Phan, T. T. H. (2022). How green finance and financial development promote green economic growth: deployment of clean energy sources in South Asia. Environmental Science and Pollution Research, 29(43), 65521–65534. [Google Scholar] [CrossRef]
  40. Sciarelli, M., Cosimato, S., Landi, G., & Iandolo, F. (2021). Socially responsible investment strategies for the transition towards sustainable development: The importance of integrating and communicating ESG. The TQM Journal, 33(7), 39-56. [Google Scholar] [CrossRef]
  41. Seibert, M. K., & Rees, W. E. (2021). Through the eye of a needle: an eco-heterodox perspective on the renewable energy transition. Energies, 14(15), 4508. [Google Scholar] [CrossRef]
  42. Semieniuk, G., Campiglio, E., Mercure, J. F., Volz, U., & Edwards, N. R. (2021). Low‐carbon transition risks for finance. Wiley Interdisciplinary Reviews: Climate Change, 12(1), e678. [Google Scholar] [CrossRef]
  43. Sinha, A., Ghosh, V., Hussain, N., Nguyen, D. K., & Das, N. (2023). Green financing of renewable energy generation: Capturing the role of exogenous moderation for ensuring sustainable development. Energy Economics, 126, 107021. [Google Scholar] [CrossRef]
  44. Strielkowski, W. (2019). Social Impacts of Smart Grids: The Future of Smart Grids and Energy Market Design. Elsevier: London. [Google Scholar]
  45. Strielkowski, W. (2021). Energy research and social sciences: thinking outside the box. E3S Web of Conferences, 250, 07001. [Google Scholar][CrossRef]
  46. Strielkowski, W. (2024). Energy Transitions and Financial Transformation: A Case of Energy and Financial Development in Late 18th-Early 19th Century Britain. Preprints, 2024021180. [Google Scholar] [CrossRef]
  47. Strielkowski, W., Civín, L., Tarkhanova, E., Tvaronavičienė, M., & Petrenko, Y. (2021). Renewable energy in the sustainable development of electrical power sector: A review. Energies, 14(24), 8240. [Google Scholar] [CrossRef]
  48. Strielkowski, W., Samoilikova, A., Smutka, L., Civín, L., & Lieonov, S. (2022). Dominant trends in intersectoral research on funding innovation in business companies: A bibliometric analysis approach. Journal of Innovation & Knowledge, 7(4), 100271. [Google Scholar][CrossRef]
  49. Sunio, V., Mendejar, J., & Nery, J. R. (2021). Does the greening of banks impact the logics of sustainable financing? The case of bank lending to merchant renewable energy projects in the Philippines. Global Transitions, 3, 109–118. [Google Scholar] [CrossRef]
  50. Taghizadeh-Hesary, F., & Yoshino, N. (2020). Sustainable solutions for green financing and investment in renewable energy projects. Energies, 13(4), 788. [Google Scholar] [CrossRef]
  51. Tan, K. M., Babu, T. S., Ramachandaramurthy, V. K., Kasinathan, P., Solanki, S. G., & Raveendran, S. K. (2021). Empowering smart grid: A comprehensive review of energy storage technology and application with renewable energy integration. Journal of Energy Storage, 39, 102591. [Google Scholar] [CrossRef]
  52. Taylor, J. (2021). Inside and outside the London Stock Exchange: stockbrokers and speculation in late Victorian Britain. Enterprise & Society, 22(3), 842–877. [Google Scholar] [CrossRef]
  53. Udeagha, M. C., & Ngepah, N. (2023). The drivers of environmental sustainability in BRICS economies: do green finance and fintech matter? World Development Sustainability, 3, 100096. [Google Scholar] [CrossRef]
  54. Usman, M., & Hammar, N. (2021). Dynamic relationship between technological innovations, financial development, renewable energy, and ecological footprint: fresh insights based on the STIRPAT model for Asia Pacific Economic Cooperation countries. Environmental Science and Pollution Research, 28(12), 15519–15536. [Google Scholar] [CrossRef]
  55. Vakulchuk, R., Overland, I., & Suryadi, B. (2023). ASEAN’s energy transition: How to attract more investment in renewable energy. Energy, Ecology and Environment, 8(1), 1–16. [Google Scholar] [CrossRef]
  56. Verde, S. F., & Borghesi, S. (2022). The International Dimension of the EU Emissions Trading System: Bringing the Pieces Together. Environmental and Resource Economics, 83(1), 23–46. [Google Scholar] [CrossRef]
  57. Wang, S., Sun, L., & Iqbal, S. (2022). Green financing role on renewable energy dependence and energy transition in E7 economies. Renewable Energy, 200, 1561–1572. [Google Scholar] [CrossRef]
  58. Zeraibi, A., Jahanger, A., Adebayo, T. S., Ramzan, M., & Yu, Y. (2023). Greenfield investments, economic complexity, and financial inclusion-environmental quality nexus in BRICS Countries: Does renewable energy transition matter? Gondwana Research, 117, 139–154. [Google Scholar] [CrossRef]

View articles in other formats

License

Coyright

Copyright (c) 2024 The Author(s).

Published by Sumy State University

Issue