Role of banking sector performance in renewable energy consumption

To secure future universal access to modern energy, large investments in renewable energy technology are required. This paper estimates the impact of five banking sector performance indicators (return on asset, market capitalisation, asset quality, managerial efficiency and financial stability) consumption for a global panel consisting 124 countries. The study used two-step system-GMM model handle potential endogeneity serial correlation. considers three homogenous subpanels which constructed based income group classification (high-, middle-, low-income countries). Generally, our results show that improved enhances consumption, with heterogenous effect across classification. For high -income (HI) countries, an increase bank size together quality have positive effects consumption. middle-income (MI) (LI) return stability determinants We also find various types. highlight importance well-functioning achieve investment needed meet demand simultaneous decrease CO2 emissions.