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Heterogeneous effects of energy efficiency, oil price, environmental pressure, R&D investment, and policy on renewable energy -- evidence from the G20 countries

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  • Wang, Qiang
  • Li, Shuyu
  • Pisarenko, Zhanna

Abstract

Understanding heterogenous effects of renewable energy consumption can serve to develop more precise strategies to promote renewable. This work is aimed to investigate the heterogeneous effects of five factors (energy efficiency, oil price, environmental pressure, research and development, and policy) on renewable energy consumption through an empirical analysis of the whole panel data of Group 20, three income groups, and 20 individual countries by using multiple co-integration estimation approaches. The results indicate that the effect of research and development is the leading contributor to promote renewable energy development in middle-income countries of Group 20, whereas the effect of policy is the major contributor to increase in renewable energy consumption in high-income countries of Group 20. It is worth noting that with the increase of income, the effects of policy and environmental pressure on promoting renewable energy are increasing, whereas the effect of research and development is declining. The analysis of these 20 individual countries indicates that research and development plays a leading role to promote renewable energy consumption in 60% of the countries, while the influence degree of policy and energy intensity rank second and third. These heterogeneity of the drivers of renewable energy should be considered to develop more precise and effective measures to accelerating renewable energy.

Suggested Citation

  • Wang, Qiang & Li, Shuyu & Pisarenko, Zhanna, 2020. "Heterogeneous effects of energy efficiency, oil price, environmental pressure, R&D investment, and policy on renewable energy -- evidence from the G20 countries," Energy, Elsevier, vol. 209(C).
    • Handle: RePEc:eee:energy:v:209:y:2020:i:c:s0360544220314298
    DOI: 10.1016/j.energy.2020.118322
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