The effect of economic growth, investment, and unemployment on renewable energy transition: evidence from OECD countries

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Güler İ., Atan M., Adalı Z.

ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH, vol.31, no.37, pp.1-14, 2024 (SCI-Expanded)

  • Publication Type: Article / Article
  • Volume: 31 Issue: 37
  • Publication Date: 2024
  • Doi Number: 10.1007/s11356-024-34143-7
  • Journal Name: ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus, IBZ Online, ABI/INFORM, Aerospace Database, Agricultural & Environmental Science Database, Aqualine, Aquatic Science & Fisheries Abstracts (ASFA), BIOSIS, CAB Abstracts, EMBASE, Environment Index, Geobase, MEDLINE, Pollution Abstracts, Veterinary Science Database, Civil Engineering Abstracts
  • Page Numbers: pp.1-14
  • Ankara Haci Bayram Veli University Affiliated: Yes

Abstract

In today’s world, where the dramatic effects of climate change continue to increase, it is critical to turn from fossil fuels to

renewable energy sources to achieve the CO2

emission reduction targets that countries have committed at the Paris Climate

Agreement and COP 27 conference. This study analyzes the effects of macroeconomic factors, including economic growth,

investments, and unemployment, on the transition to renewable energy in OECD countries. From 1996 to 2020, long-run

relationships between variables were examined using advanced econometric methodologies for empirical analysis. For this

purpose, panel data analysis, second-generation panel unit root tests, cross-sectional dependence tests, and panel cointegration

tests were applied. Economically, in the long run, according to panel CCEMG and AMG estimator, while economic growth

enhances the renewable energy transitions, investment does not statistically promote an impact on the renewable energy

transitions. Renewable energy transition increases with unemployment. Moreover, the role of the considered variables in the

renewable energy transition varies among country-specific. Within the framework of the results obtained, it has been proven

that before determining policies for renewable energy transformation, it is necessary to do the necessary groundwork in the

economy to increase economic growth and investments and reduce unemployment.