Heterogeneous impact of green energy innovation on energy transition in the G7 nations: an aggregated and disintegrated analysis through advanced quantile approach
Аннотация
The G7 nations is a major global consumers of natural resources and energy. These nations are confronted with substantial obstacles in their pursuit of sustainable growth through energy transition, while upholding their status as global economic leaders. As a result, this current study conducted an aggregated and disintegrating analysis on the heterogeneous role of green energy innovation on energy transition in G7 nations. Green energy innovation was disintegrated into hydro, solar and wind energy. Moreover, the heterogeneous effects of green innovation in solar, hydro and wind on energy transition was investigated, an analysis that has not been previously examined. For the econometric estimation, we adopted the Quantile-on-Quantile Regression (QQR) and the quantile causality method. The results of the QQR indicates that the positive role of green energy innovation on energy transition in all of the G7 nations. However, this positive role is more dominant in five G7 nations, namely Italy, Germany, Japan, the UK and the USA. Additionally, the result also highlights that the connection between green energy innovation and energy transition is differs across the various quantiles for different nations. Moreover, the quantile causality analysis indicates that green energy innovation has the potential to predict future values in energy transition within the G7 nations. The study emphasizes various policy considerations for promoting energy transition through green energy innovation in G7 nation, which help realizing sustainable development.