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Journal : Jurnal Ekonomi dan Bisnis

Energy mix diversification and financial development: Electricity in G20 countries Riyana, Putri; Hartono, Djoni
Jurnal Ekonomi dan Bisnis Vol. 28 No. 2 (2025)
Publisher : Fakultas Ekonomika dan Bisnis Universitas Kristen Satya Wacana

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24914/jeb.v28i2.15491

Abstract

Energy mix diversification is unique due to differences in resource potential, economic and environmental conditions in each country. The transition to renewable energy is one of the sustainable development agendas, as well as the G20's targets in addressing environmental issues and building energy security. However, in its implementation, a good financial system is needed to accommodate infrastructure development and construction. This study aims to analyze the role of financial development in influencing energy mix diversification, focusing on how progress in the financial sector can encourage a more diverse and sustainable energy transition. The fixed effect model and System-GMM estimator are employed in this study, using panel data samples from 19 members of G20 countries over a 22-year period. The estimation results show that financial development has a positive and significant effect on energy mix diversification. Therefore, strengthening financial systems both from the institutions and financial market side can play a crucial role in promoting a more balanced and inclusive energy transition. The results also show that the control variables energy efficiency, carbon emissions and FDI have a negative relationship to energy mix diversification, while economic growth has a positive relationship to energy mix diversification. These findings suggest that higher economic activity enhances a country’s capacity to expand energy diversification, whereas improvements in energy efficiency, higher carbon emissions, and profit-oriented foreign investment flows tend to limit efforts toward greater energy diversification.
Co-Authors A. Awirya, Agni Adiwan Fahlan Aritenang Agni Alam Awirya Agni Alam Awirya Agni Alam Awirya Agni Alam Awirya Ahmad Fahriza Andhiny Adyaharjanti Andrio Firstiana Sukma Aprilina Tri Widyastuti Arianto Patunru Arief A. Yusuf Arief A. Yusuf Arief Anshory Yusuf Audhi Ahmad Balya Azizon, Azizon B. Rakhmawan, Catur Balya, Audhi Ahmad Balya, Audhi Ahmad Budiman, Reza A Budiyanto Budiyanto Budy P. Resosudarmo Budy P. Resosudarmo Bunasor Sanim Dedi Budiman Hakim Dela Maria Ardianti Dewi ANGGRAENI Didi Nuryadin Dini Mulyani Ditya A. Nurdianto Ditya A. Nurdianto Djamester Simarmata eka novitasari Estiana Rusmawati Fazriyan Wardani Adhitya Fazriyan Wardani Adhitya, Fazriyan Wardani Firdaus, Firdaus Adam Haidlir, Banu M Harisuddin Harisuddin Hastuti, Sasmita H Herry Irawan Heru Hermawan Hilma Oktaviani Hutabarat, Marcella Alika Hutabarat, Marcella Alika Ida Bagus Putu Cesario Putra Surayuda Indah Prasetyawati Jamhari Jamhari Jayanti Maharani Kartika Pramahesti Kasri, Rahmatina A Kristanti, Hana Dwi Kuratul Aini Kusdarwati, Eny Laksmono, Bambang S Maemonah, Maemonah Marcella Alika Hutabarat Misdawita Misdawita Misdawita Misdawita Misdawita, Misdawita Mohamad Egi Destiartono Mohamad Ikhsan Mulyani, Karina Indah Muryani Muryani Nadhif Zulfa Agustina Nadira Aisha Susanto Nanda Puspita Nayasari Aissa Novani Karina Saputri Oktaviani, Hilma Pipit Ronalia Prasojo, Hadi Prima Agung Putricia Synthesa Rahma Firdaningtyas, Sakinah Rattekarua, Lucky Mutiara Pindan Rayinda Citra Utami Rayinda Citra Utami Rayinda Citra Utami, Rayinda Citra Reza A Budiman Rika Kumala Dewi Rini Astuti Riyana, Putri Rusmawati, Estiana Rustam Rustam Ryan Aldiansyah Akbar Sasmita H Hastuti Setiya, Banu Shofie Azzahrah Siagian , Theo Ojahan Pardamean Socia Prihawantoro Sudarno Sumarto Suhendra Sukma, Muhammad Sukoco Sukoco Tony Irawan Watekhi Watekhi Widyastuti, Nur Laila Wisynu Wardhana Yusman Syaukat Zetara Zetara