Energy transition and carbon neutrality: Exploring the non-linear impact of renewable energy development on carbon emission efficiency in developed countries

This study aims to explore the non-linear renewables and carbon emission efficiency (CEE) nexus to optimize the energy transition path. Taking 32 developed countries that have proposed carbon neutrality targets as the research objects, the super-efficiency slacks-based measure (SE-SBM) model is first used to measure their CEE from 2000 to 2018. Then, a newly developed panel threshold model with interactive fixed effects (PTIFEs) is established to comprehensively explore the non-linear impact of renewable energy development (RED) on CEE. The results show that: (1) During the sample period, there are significant differences in CEE among countries, and most countries are inefficient. (2) On the whole, RED is conductive to CEE, but there is a significant threshold effect. Specifically, this positive effect decreases with energy consumption intensity, whereas it increases with financial development, RED, and CEE. (3) The heterogeneity analysis shows that the threshold effect persists across countries with different income levels, and the direction is consistent with the entire sample. Besides, as the incomes down, the positive correlation between RED and CEE is significantly diminished. This study provides a new perspective for optimizing the energy transition path.

Automated summary

This study found that in 32 developed countries, most countries have low carbon emission efficiency, but overall, renewable energy development contributes to improving carbon emission efficiency. Additionally, an important threshold effect was discovered, indicating a significant tipping point in the impact of renewable energy development on carbon emission efficiency.