R&D intensity and its influence on renewable energy consumption: Evidence from selected Asian economies

Abstract The main objective of this study is to investigate the impact of research and development (R&D) intensity on renewable energy consumption in Asian economies. We have relied on the autoregressive distributive lag (ARDL) model to get empirical estimates. The results show that the short and long-run estimates attached to R&D intensity are significantly positive in China and Japan, signifying that a rise in R&D intensity increases the renewable energy consumption in China and Japan. Conversely, the short-run estimated coefficients of energy intensity are significantly negative in India and positive in Japan. In the long run, the estimates of energy intensity are positive and significant in India and Japan only. Among the control variables, the rise in CO2 emissions causes renewable energy consumption to rise in all three economies in the long run. However, the long-run effects of an increase in trade also positively affect renewable energy consumption in China and Japan. Lastly, a rise in financial development gives rise to renewable energy consumption in the long run in China only. On the policy front, policymakers should promote investment in R&D to minimize the costs of conventional energy consumption.

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