Pattern Recognition of Green Energy Innovation Investments Using a Modified Decision Support System

Abstract

This study examines the fintech innovation life cycle of green energy investments with a new model by using integer patterns, geometrical recognition methodology, Pythagorean fuzzy decision-making trial and evaluation laboratory (DEMATEL) and technique for order preference by similarity to ideal solution (TOPSIS). It is concluded that aging and declining are the most significant phases for the innovation life cycle process for the fintech-financing alternatives in clean energy investments. Furthermore, the finding funds from the shareholders is the most appropriate fintech-based financing alternatives for green energy investment projects. Thus, it is recommended that green energy investors must make a strategic decision in the last stages of the life cycle of innovation. In this framework, either this investment should be terminated, or new technological developments should be adapted to the investments. Moreover, it is also identified that they should mainly prefer equity financing.

Unlocking the Green Economy in African Countries: An Integrated Framework of FinTech as an Enabler of the Transition to Sustainability

“…[34], to capture green FinTech policies at the macro-and microeconomic levels. Interestingly, new research attempts to introduce artificial intelligence-based methods [35][36][37] to overcome the limitations of the conventional techniques and to reduce the error term.…”

“…Additionally, most econometric models were incapable of solving models in the presence of multiple sets of variables. At this point, artificial intelligence-based models gained renewed respect and became the new pathway among the retrieved papers [35][36][37][38][39][40].…”

“…The first cluster illustrates the technology and instruments used in green FinTech. These instruments include: green credit and green investment [33], green bonds [34,38], the equity sharing model for FinTech-based financing alternatives [38], equity financing, and four different FinTech-based financing alternatives mentioned in [36]. Other instruments include: blockchain technology, cryptocurrencies [34], green InsurTech solutions in the insurance sector [31], as well as the use of P2P trading models to trade energy-related carbon emissions' quota [60].…”

“…The authors in [32] posit that, whilst the energy sector holds the responsibility for the climate change, FinTech provides an opportunity for the use of clean energy. Furthermore, the authors in [36] noted that FinTech provides an additional avenue through which equity-based financing can be used in green energy investment projects.…”

“…The authors in [53] noted that the greater a country's level of green financial innovation the lower its carbon emissions will be, resulting in reduced climate risks. Some researchers, such as [36], suggest that equity financing is the most suitable alternative for clean energy investments in the future. Moreover, the publication by [48] stated that international public policies related to green finance are of significance for global sustainable development.…”