Diffusion of Technology and Renewable Energy in the G10 Countries

Abstract

The paper analyzes the threshold effect of technology innovation on renewable energy in the G10 countries through the panel threshold method. The outcome shows that technology innovation has a low impact on renewable energy when technology innovation is below the threshold value. However, technology innovation has a strong positive effect on renewable energy when the threshold value is above because of the expansion of spending on energy and technology. Moreover, digitalization makes renewable integration possible, analytic and artificial intelligence improve production. The findings explore that carbon emission has a negative impact on renewable energy. However, knowledge stocks, imported oil prices, economic growth, and electricity consumption positively affect renewable energy. The countries must develop more cost-effective, mature, and accessible renewable energy technology. Also, the focus should be on implementation instead of investing in existing infrastructure. A political commitment to phase out nuclear power and fossil fuels can improve the underwhelming performance.