Thresholds in the Technology-Driven Renewable Energy Transition

This study examines the nonlinear impacts of technological development on the renewable energy transition in 54 countries from 2002 to 2019. The empirical findings indicate the following: (i) An increase in technology leads to an increase in renewable energy production in high-income countries, whereas technological development triggers nonrenewable energy production in low-income countries. (ii) Small government size and low levels of financial development hurt the technology-driven renewable transition in low-income countries, while large government size and greater levels of financial development crowd out the stimulative effects of technology on the clean transition in high-income countries. (iii) The highest volatility in the technology elasticity of renewable production comes from countries with different governance qualities. (iv) The renewable energy transition process entails a larger per capita income in high-income countries than in low-income countries.