Renewable Energy Use, Green Innovation, and Climate Change Performance: New Evidence from OECD Countries

Thi My Nhung Nguyen, Thanh Trung Bui () and Cong Tam Trinh ()
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Thi My Nhung Nguyen: International University, Vietnam National University, Department of Management, School of Business
Thanh Trung Bui: International University, Vietnam National University, Department of Management, School of Business
Cong Tam Trinh: University of Economics and Finance, International Institute

A chapter in Vietnamese Business and Sustainable Development in a Globalized and Digitalized Era, 2026, pp 439-459 from Springer

Abstract: ABSTRACT Climate change continues to pose serious global risks, and two strategies often emphasized are greater reliance on renewable energy and support for green innovation. This study examines how renewable energy consumption per capita (RENPERCAP) and green innovation (GI) shape the climate change performance index (CCPI) using panel dataset covering 10 OECD countries from 2007 to 2016. To examine the long- and short-run links, we apply panel econometric tools: the CADF unit root test, Westerlund–Edgerton cointegration procedure, and Pooled Mean Group estimation. The results point to a clear pattern. Renewable energy consumption is associated with stronger climate performance in the long run and the effect is statistically significant. By contrast, green innovation is more closely linked to short-run improvements, reflecting faster but less durable gains. Taken together, the findings suggest that energy transition strategies must be coupled with continuous innovation efforts if OECD countries wish to build resilience and sustain low-carbon growth.

Keywords: renewable energy consumption; green innovation; climate change performance; PMG (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-032-24745-2_23

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DOI: 10.1007/978-3-032-24745-2_23

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