Exploring the Influence of Export Diversification, Technological Innovation, and Political Indices on Renewable Energy Consumption: Evidence from Oil-Exporting Nations

Articles in Press

Document Type : Research Paper

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Department of Economics and Management, Urmia University, Urmia, Iran

10.22059/ier.2024.371282.1007918

Abstract

The panel smooth transition regression model was employed to evaluate the role of governance indices in the impact of export diversification and technological innovation on renewable energy consumption. We estimated the relationship among the variables from 1996 to 2014 by considering the lagged form of governance indices as a transition variable. Technological innovation, international trade, governance index, CO2 emissions, OPEC (Organization of the Petroleum Exporting Countries) oil price, and income inequality were included as controlled variables. Based on the results, at high levels of governance indices and beyond the threshold point, the effect of export diversification on renewable energy consumption became negative, whereas the effect of technological innovation was positive in both regimes. The results suggest that there is a need for cutting-edge, renewable, energy-based production processes to establish non-polluting, energy-efficient, and eco-friendly procedures at both industrial and household levels. The production and consumption of renewable energy resources, where the role of development-oriented governments is crucial, should be enhanced to simultaneously achieve environmental improvement, economic goals, and sustainable and green development.

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Iranian Economic Review

Articles in Press, Accepted Manuscript
Available Online from 16 June 2024

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