A global shift: How modern technologies are powering the energy transition in the face of climate change

Decarbonizing energy systems and mitigating climate risks necessitate a transition to modern technologies, which foster advancements in the financial, transportation, communication, and manufacturing sectors. This research examines the influence of modern technologies in contemporary financial, communication, transportation, and manufacturing systems on global energy transition within the framework of concerns about climate change. The analysis utilizes daily data from June 16, 2017 to July 1, 2024. The empirical findings derived from the rolling window quantile correlation (RWQC), partial rolling window quantile correlation (PRWQC), and Quantile DCC-GARCH methodologies reveal the following: (i) modern technologies in financial, communication, transportation, and manufacturing systems exhibit a positive correlation with global energy transition; (ii) the strength of the positive correlation between modern technologies in financial, communication, transportation, and manufacturing systems and the global energy transition varies across quantiles and over time; (iii) excluding the influence of climate change concerns diminishes the correlation between modern technologies in financial, communication, transportation, and manufacturing systems and the global energy transition, underscoring the pivotal role of environmental awareness in achieving climate-related objectives; and (iv) the Quantile DCC-GARCH model reaffirms the positive correlation between modern technologies in financial, communication, transportation, and manufacturing systems and the global energy transition. Based on these insights, climate policy measures—such as promoting clean energy technologies, green financing, energy efficiency, and other integrative strategies—should be prioritized to facilitate a sustainable global energy transition.