Environmentally related technologies and environmental regulations in promoting renewable energy: evidence from OECD countries

Lan Khanh Chu ()
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Lan Khanh Chu: Banking Research Institute, Vietnam Banking Academy

Journal of Environmental Studies and Sciences, 2023, vol. 13, issue 1, No 14, 177-197

Abstract: Abstract Environmental degradation and energy security are placing greater emphasis on the development of renewable energy across the world. This study explores the driving forces of renewable energy in The Organisation for Economic Co-operation and Development countries from 1992 to 2019, focusing on technologies and regulations. Specifically, it applies the panel quantile regression to analyze the long-term impacts of environmentally related technologies and environmental regulations on renewable energy consumption. In this regard, the study offers a novel methodological contribution that makes it possible to explain the heterogeneous role of such factors in countries with low, medium, and high-development levels of renewable energy. The results indicate that while environmentally related technologies drive renewable energy positively, the higher beneficial impacts are realized at medium to high quantiles of renewable energy consumption. In contrast, environmental regulations greatly promote renewable energy at low and medium levels of renewable energy consumption. Moreover, higher stringency starts diminishing renewable energy consumption at its 90th quantile, indicating the existence of the “green paradox” effect. The results suggest the bi-directional linkage between green technologies and renewable energy while there is a uni-directional causality running from environmental regulations to renewable energy. These discoveries lead to valuable policy implications for different countries aiming to develop renewable energy. Countries in the initial phase of renewable energy development should strengthen environmental regulations while those at the later stage should encourage technological innovations and control the potential side effects of stringent environmental policies.

Keywords: Environmentally related technologies; Environmental regulations; OECD countries; Quantile regression; Renewable energy (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s13412-022-00810-9

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