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Energy mix diversification in emerging economies: An econometric analysis of determinants

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  • Nibedita, B.
  • Irfan, M.

Abstract

Energy mix diversification (EMD) is recognized as a plausible strategy for emerging economies to achieve energy security targets and meet net zero carbon emissions goals by 2050. Thus, this research explores the determinants of EMD utilizing a sample panel for seven major emerging (E7) economies, including Brazil, China, India, Indonesia, Mexico, Russia, and Turkey, observed from 1995 to 2018. The Pedroni panel cointegration test investigates the long-run equilibrium, and the long- and short-run determinants are identified using a panel autoregressive distributed lag model. The findings reveal a long-run equilibrium linkage among EMD, carbon emissions, financial development, economic growth, technological progress, energy efficiency, and globalization. The long-run estimates show that energy efficiency and carbon emissions are driving forces for EMD, whereas technological progress, financial development, and globalization have insignificant effects. However, all variables - except economic growth are found to be the barriers to EMD in the short-run. The findings presented in this research are novel and add value to the energy literature by identifying the long- and short-run determinants of EMD, specifically for E7 economies. These economies are expected to take appropriate actions to stimulate the adoption of clean and green energy sources; thus, appropriate implications of the findings are discussed.

Suggested Citation

  • Nibedita, B. & Irfan, M., 2024. "Energy mix diversification in emerging economies: An econometric analysis of determinants," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PB).
    • Handle: RePEc:eee:rensus:v:189:y:2024:i:pb:s1364032123009012
    DOI: 10.1016/j.rser.2023.114043
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    Keywords

    Energy mix diversification; Determinants; E7 economies; Autoregressive distributed lag modelling;
    All these keywords.

    JEL classification:

    • E7 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics

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