Abstract
This study seeks to explore the effects of globalization, financial inclusion, and technological innovations on a selected sample of sixteen emerging economies in terms of energy intensity. The analysis includes a precise control of the effects of economic growth and natural resources. The temporal scope of the study involves a twenty-two-year span, from 2000 to 2021, which provides a broad overview of how the dynamics within these countries have evolved over time. Methodologically, Dynamic Ordinary Least Squares (DOLS) and Fully Modified Ordinary Least Squares (FMOLS) are used in the empirical research to assess the relationships between these determinants and energy intensity. Before embarking on the subsequent core econometric analyses, the panel is subjected to various diagnostic tests, such as descriptive statistics, cross-sectional dependence, and unit root examination. The study uses Fisher effect Westerlund test to examine panel cointegration. The results point to a negative impact of globalization and a positive impact of financial inclusion on energy intensity. At the same time, the findings reveal positive relationships between natural resources and GDP with energy intensity. Additionally, the squared GDP term shows an implied negative effect that is developing and is a consequence of the nature of how both energy intensity and GDP were changing over time. This research, therefore, serves to highlight the need for formulating policies aimed at managing globalization and exploiting any advantages that may be gained from globalization towards enhancing energy efficiency. Such policies should include technology transfer and a harmonization of regulatory issues. At the same time, a need arises to promote technology imported and create a favorable environment for sustainable energy practice.