The role of eco-innovations, trade openness, and human capital in sustainable renewable energy consumption: Evidence using CS-ARDL approach

Recently, Group of 20 (G20) economies has faced extensive energy consumption issues and lack of attention has been paid by the researchers towards the effectiveness of key driven factors REW energy consumption such as ecological innovation, trade openness and human capital. The study, thereby, examines the association between said constructs and provides evidences from G-20 economies covering the period from 1995 to 2019, hence addressing the literary gap. The study used multiple methods such as second-generation panel estimation method for unit root, CS-ARDL technique to find out the association among constructs in short and long run and AMG and CCEMG method for robustness analysis. Results revealed that eco-innovations, trade openness and human capital play significantly positive role in the adoption of renewable energy consumption in G-20 countries. These estimations are found to be robust in AMG and CCEMG analysis. Relevant policies are suggested to be made by practitioners based on the obtained results.

Automated summary

This study examines the association between ecological innovation, trade openness, human capital, and renewable energy consumption. The results show that these factors play a significant positive role in the adoption of renewable energy consumption in G-20 countries.