Green energy transition in OECD region through the lens of economic complexity and environmental technology: A method of moments quantile regression perspective

Mohammad Razib Hossain, Devi Prasad Dash, Narasingha Das, Ehsan Ullah and Md. Emran Hossain

Applied Energy, 2024, vol. 365, issue C, No S0306261924006184

Abstract: Despite having multidimensional positive externalities of renewable energy (RE) in theory, the literature on RE's economic and environmental determinants is still very nascent. We have addressed this research gap by considering a balanced panel of 38 OECD nations attempting a phase-by-phase energy transition. We have used data spanning from 2000 to 2020 and deployed the novel method of moments quantile regression (MMQR) approach. Our results unveil that economic complexity reduces the consumption of renewable energy among the OECD nations, indicating that as the export becomes diversified, energy consumption at the production level becomes more dependent on non-renewable sources. This further suggests that OECD nations are yet to meet their renewable energy generation threshold. Moreover, energy efficiency fosters the consumption of renewable energy, substantiating that energy efficiency and renewable energy share complementary co-movement among the OECD nations. Furthermore, we unravel that environmental technology and natural resource rent have heterogeneous effects on renewable energy consumption in OECD. For instance, environmental technology only boosts RE consumption at the higher quantiles (70th to 95th), whereas revenue from natural resource rent curbs RE consumption. Our conclusions hold after a series of robustness checks. Overall, we propose that OECD nations should only export those products with absolute comparative advantage to reduce excessive dependence on fossils. Additionally, investment in renewable energy technology development should be escalated to ensure energy efficiency in the long-term.

Keywords: Energy transition; Economic complexity index; Environmental technology; OECD nations; Renewable energy; Method of moments quantile regression (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0306261924006184
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:appene:v:365:y:2024:i:c:s0306261924006184

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/bibliographic
http://www.elsevier. ... 405891/bibliographic

DOI: 10.1016/j.apenergy.2024.123235

Access Statistics for this article

Applied Energy is currently edited by J. Yan

More articles in Applied Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().