Integrating renewable energy systems: Assessing financial innovation, renewable energy generation intensity, energy transition and environmental regulation with renewable energy sources

Abstract

The objective of the research is to determine the integration of renewable energy systems with the role of financial innovation, renewable energy intensity, energy transition and environmental regulation in China. To estimate the findings, the study has collected the empirical data from 1990 to 2021. The study uses correlation analysis, slope endogeneity analysis, cross-sectional dependency, unit root analysis, Westerlund co-integration analysis, methods of moments quantile regression, long-run estimation analysis, 2SLS analysis and sensitivity analysis. The findings reveal that the energy transition from fossil fuels and renewable energy enhances the integration of renewable energy systems in China, and it significantly depends upon regulatory compliance. Endorsing it, the study suggests prudent and collaborative policy recommendations for compatibility with financial industry collaboration for renewable energy strategy to achieve net zero. The study extends the implications for practitioners that were aligning renewable energy systems with financial innovation, and regulatory compliance is crucial to ensure renewable energy transition, energy generation optimization, and climate goals for zero carbon. The novelty of the research is presented in a comprehensive analysis of inquiry, offering detailed insights and actionable ways forward for policymakers and industry experts.