How R&D expenditure affects renewable energy development: the role of trade liberalization and CO2 emissions in G-7 countries
International Journal of Energy Sector Management
ISSN: 1750-6220
Article publication date: 31 October 2023
Abstract
Purpose
Expansion of the consumption of renewable energy is a significant issue for reducing global warming, to cope with climate change and achieve sustainable development. This study aims to examine how research and development expenditure (R&D) affects renewable energy development in developed G-7 countries over the period from 2000 to 2019. Variables of trade liberalization and CO2 emissions are considered control variables.
Design/methodology/approach
This study has adopted a panel quantile regression. The impact of the variables on renewable development has been examined in quantiles of 0.1, 0.25, 0.5, 0.75 and 0.9. Also, a robust examination is accomplished by applying generalized quantile regression (GQR).
Findings
The empirical findings reveal a positive and significant relationship between R&D and the consumption of renewable energy in 0.1, 0.25, 0.5 and 0.75 quantiles. Also, the findings describe that the expansion of trade liberalization and CO2 emissions can significantly increase the development of renewable energy in G-7 countries. Furthermore, GQR verifies the main outcomes.
Practical implications
These results have very momentous policy consequences for the governments of G-7 countries. Therefore, investment and support for the R&D section to promote the development of renewable energy are recommended.
Originality/value
This paper, in comparison to other research, used panel quantile regression to investigate the impact of factors affecting renewable energy consumption. Also, to the best of the authors’ knowledge, no study has perused the effect of R&D along with trade liberalization and carbon emissions on renewable energy consumption in G-7 countries. Also, in this paper, as a robustness check for panel quantile regression, the GQR has been used.
Keywords
Acknowledgements
The authors would like to thank reviewers and editor for their helpful suggestions.
Funding: No funds, grants or other support was received.
Competing interests: The authors declare no competing interests.
Ethics approval and consent to participate: This paper does not contain any studies with human participants or animals performed by any of the authors.
Consent for publication: The authors affirm the informed consent for publication of the article.
Availability of data and materials: The data sets used and/or analyzed during the current study are available from the corresponding author on reasonable request.
Citation
Karimi Alavijeh, N. and Zangoei, S. (2023), "How R&D expenditure affects renewable energy development: the role of trade liberalization and CO2 emissions in G-7 countries", International Journal of Energy Sector Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJESM-07-2023-0004
Publisher
:Emerald Publishing Limited
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