Assessing the impact of fiscal decentralization, green finance and green technology innovation on renewable energy use in European Union countries: What is the moderating role of political risk?

Renewable energy use plays a substantial role in sustaining environmental quality. Therefore, there is a need to make substantial efforts to advance the renewable energy sector and to provide affordable, clean, and reliable energy to attain sustainable goals. With this notion, the present study aims to assess the definitive roles of green technology innovation (GTI), green finance, fiscal decentralization, political risk, and environmental regulations in fostering renewable energy use while controlling for the effects of industrial structure and economic growth for ten selected European Union (EU) nations spanning from 2000 to 2020. The study's findings reveal that while GTI, green finance, and fiscal decentralization foster renewable energy use, political risk impedes renewable energy use in EU nations. Notably, this study advises EU nations to persuade the integration of local and federal governments for the devolution of fiscal powers and ensure a stable political environment to promote green innovation and investments in the renewable energy sector to realize sustainable goals.