Financial development stages and energy efficiency: Mediating roles of renewable energy and moderating effect of green finance and FDI

The study about modelling aims to comprehend how renewable energy use mediates the effects of foreign direct investment, green finance, economic growth, natural resources rent, international trade, and urbanization on energy efficiency while examining the moderation of financial development by employing a two-stage moderated mediation model in the particular case of 79 nations, covering the twenty-one years 1999-2019. We obtained data from the World Bank (2022) and the OECD (2022). The findings show that Difference GMM proves the presence of a conditional effect of FD on countries. The result of the second stage moderated mediation has a strongly significant impact. The study suggests that policymakers should concentrate their focus on Urbanization's adaptation to support the use of clean, renewable energy. Specific environmental rules may encourage associated businesses in economies to spend more on R&D to advance technology.