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Towards world's low carbon development: The role of clean energy

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  • Lin, Boqiang
  • Li, Zheng

Abstract

The world seeks for a more sustainable and low carbon development (LCD) and the application of clean energy forms a critical solution in this process. However, there are few studies about how clean energy utilization works as a mediator between national income level and LCD as well as between R&D and LCD or a moderator adjusting carbon emission activities in the world’s low-carbon development. We hypothesize that clean energy use is a mediating variable for national income levels and R&D investment and positively affect low-carbon development. In contrast, clean energy acts as a moderating variable that mitigates the negative impact of industrialization on low-carbon development. To test the hypothesis, this study uses panel data of 72 economies from 2000 to 2019. Total-factor carbon performance (TFCP) is calculated by fixed-effects stochastic frontier analysis and indicates LCD level. The hypothesis is supported by the results of mediation and moderation analysis. The Sobel mediation test and Bootstrap Test are applied to verify the robustness of the results. This paper deeply reveals the importance of clean energy utilization as a mediator and a moderator. Under the pressure of industrialization and increasing energy need for economic growth, clean energy should have a larger share. Investments and R&D should pay more attention to clean energy development.

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  • Lin, Boqiang & Li, Zheng, 2022. "Towards world's low carbon development: The role of clean energy," Applied Energy, Elsevier, vol. 307(C).
    • Handle: RePEc:eee:appene:v:307:y:2022:i:c:s0306261921014331
    DOI: 10.1016/j.apenergy.2021.118160
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