Does green finance improve energy efficiency? New evidence from developing and developed economies

The ground-breaking research on the electricity sector and its effects on energy efficiency (EE) in advanced and emerging economies are crucial in developing a futuristic pathway, leading to self-sustainable energy use. Therefore, this research investigates the functions of sustainable investments to ensure EE in advanced and emerging economies in a decade, ranging from 2008 to 2018, by applying the data envelopment analysis (DEA) method. The findings reveal a lower degree of EE in advanced and emerging economies (0.44), discovering only seven nations, saving energy with DEA and the West Asia and North Africa groups as the top energy savers. Moreover, the mean EE ratio of the advanced and emerging countries plummeted, dating back to 2013, whereas financial investment positively impacts EE. Similarly, the study perceives how open structures in the nations' economic systems can advance ecological conditions by reducing pollution levels and graft enable EE and reduce pollution levels. Simultaneously, natural resources and technological advancements can accelerate the course of EE and ecological dimensions. Therefore, analysis of causality reinforce the response hypotheses between EE, Environmental carbon emissions levels, financial advancements, graft control, proceeds from mineral resources, technological creativity, commerce, and localization of industries, respectively.