Sustainable finance contribution to energy value chain participation: The role of industrial automation

This study examines the impact of sustainable finance on energy value chain participation by employing a dataset covering 59 countries during 2010–2019. We, fundamentally, address the potential mechanism between
them through industrial automation development. Three heterogeneous sustainable finance – energy value chain participation nexuses are detected. The primary finding denotes that sustainable finance plays a substantial role
in fostering increased participation in the energy value chain. However, the influence of sustainable finance on energy value chain participation varies based on different factors, including sub-indicators of sustainable finance,
the position within the energy value chain, and the level of trade freedom in countries. This study also identifies a negative moderating effect of government effectiveness, which implies government effectiveness negatively
moderates sustainable finance's impact, reversing its positive effect on energy value chain participation.
Furthermore, industrial automation serves as a crucial mediator as sustainable finance indirectly influences energy value chain participation by promoting both industrial robot installation and application.