Exploring the Drivers of Renewable Energy Consumption: The Roles of Innovation, Financial Globalization, and Uncertainty in Next-11 Countries

The primary aim of this study is to comprehensively analyze the economic, financial, and technological dynamics shaping renewable energy consumption in the Next-11 countries. In this context, the effects of technological innovation, the financial globalization index, the world uncertainty index, and trade openness variables on renewable energy consumption are examined. Using data covering the period 1990-2021, the analysis was conducted through the Common Correlated Effects (CCE) method. The results indicate that technological innovation and global uncertainty negatively affect renewable energy consumption, whereas financial globalization increases the use of renewable energy. The findings suggest that structural and institutional constraints, limited access to technology, and investment risks arising from uncertainty restrict the renewable energy transition. Conversely, financial integration facilitates international capital flows and supports clean energy investments. The results of this research are significant for policymakers aiming to accelerate the energy transition and for financial institutions seeking to promote sustainable investments.