The Moderating Influence of Digitalization on Renewable Energy-Human Development Nexus in Developing Countries

Abstract

Using data from 1997 to 2021, this study explores the moderating influence of digitalization on the impact of renewable energy on human development in 38 developing countries, using Cross-sectional Augmented Autoregressive Distributive Lag (CS-ARDL) estimators. The findings establish that the positive impact of renewable energy on human development is conditioned upon digitalization in developing countries. Also, the results of control variables reveal that financial development has a significant positive effect on human development. In contrast, lower environmental degradation, inflation, and control of corruption have negative and significant impact on human development. Therefore, the evidence obtained in this study confirmed the postulation in the literature that digitalization enhances the generation and distribution of renewable energy, which bolsters human development in developing countries. As a result, policymakers in developing nations should embrace digitalization as a policy tool to promote the generation and distribution of affordable renewable energy, as well as to smooth the transition to clean energy for greater human development.