Can Technological Advancement Empower the Future of Renewable Energy? A Panel Autoregressive Distributed Lag Approach

Abstract

Energy is pivotal in achieving sustainable development’s economic, social, and environmental objectives. However, to attain this crucial goal, it is essential to focus on the type of energy we generate and the methods by which we use them. The availability, accessibility, and use of green technologies have improved significantly since the Fourth Industrial Revolution (4IR). This paper applies the pooled mean group Autoregressive Distributed Lag (PMG ARDL) model from 2000 to 2021 to 11 countries that, according to the Climate Council, are most affected by environmental degradation issues and are taking new initiatives to reduce their emissions. The results indicate a significant relationship between renewable energy consumption and technological advancements in the short and long term. However, there needs to be more of the literature about the negative impact of research and development on renewable energy consumption. The findings of this paper can assist policymakers in determining effective strategies in the renewable energy sector, as any technological advancement is an innovative way to transform the renewable energy industry completely. By optimizing energy production and reducing costs, technological advancement can help a country achieve its renewable energy goals.