Panacea (medicine)

Gene

Transition (genetics)

Engineering

Ecology

Efficient energy use

Biology

Statistics

Environmental economics

Kyoto Protocol

Energy (signal processing)

Economics

Market economy

Biochemistry

Energy policy

Protocol (science)

Business

Alternative medicine

Subsidy

Energy transition

Greenhouse gas

Renewable energy

Endogeneity

Mathematics

Public economics

Econometrics

Medicine

Chemistry

Natural resource economics

Electrical engineering

Pathology

Technological Forecasting and Social Change

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.

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