The roles of technology and Kyoto Protocol in energy transition towards COP26 targets: Evidence from the novel GMM-PVAR approach for G-7 countries

Dogan E., Chishti M. Z., Alavijeh N. K., Tzeremes P.

TECHNOLOGICAL FORECASTING AND SOCIAL CHANGE, cilt.181, 2022 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 181
  • Basım Tarihi: 2022
  • Doi Numarası: 10.1016/j.techfore.2022.121756
  • Dergi Adı: TECHNOLOGICAL FORECASTING AND SOCIAL CHANGE
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus, ABI/INFORM, Aquatic Science & Fisheries Abstracts (ASFA), INSPEC, Political Science Complete, Social services abstracts, Sociological abstracts, Worldwide Political Science Abstracts, DIALNET
  • Anahtar Kelimeler: Energy transition, Environmental policy, Renewable technology, Sustainable development, RENEWABLE ENERGY, ECONOMIC-GROWTH, VECTOR AUTOREGRESSIONS, FINANCIAL DEVELOPMENT, EMPIRICAL-ANALYSIS, TRADE OPENNESS, CO2 EMISSIONS, CONSUMPTION, DETERMINANTS, DRIVERS
  • Abdullah Gül Üniversitesi Adresli: Evet

Özet

The investigation of the determinants of energy transition has become very attractive and popular due to the Sustainable Development Goals and COP26 targets. However, one shortcoming of the existing studies is the inability to understand the effects of technology and environmental policy to energy transition while the other criticism is the use of conventional techniques that do not handle the endogeneity issue. Thus, this study investigates the impacts of technology and Kyoto Protocol in addition to several control variables to energy transition by applying the novel econometric method of Sigmund and Ferstl (2021) on the annual data from 2000 to 2019 for G-7 countries. The empirical results confirm the positive and significant link between technology and energy transition, such that, a 1% rise in technology enhances the energy transition by 0.32%. Similarly, Kyoto Protocol has a significantly positive impact on energy transition. An explanation is that the Protocol is based on principles and policies that emphasize the advanced and industrialized economies to enhance the environmental quality by promoting the renewable energy resources and reducing the greenhouse gases. Furthermore, the G-7 authorities should start to provide subsidies to clean energy and technology-related investors and levy multiple disincentives (i.e., higher tax rates) on the industries deploying the conventional and polluting methods for energy production. Further policy implications are discussed in the study.