Human capital and renewable energy transition towards carbon reduction: The role of Technical and Vocational Education and Training (TVET)

Abstract

Climate change is one of the most urgent global challenges, largely driven by carbon dioxide (CO2) emissions from energy production and industrial activities. This fact makes the transition to renewable energy a crucial strategy for reducing carbon emissions. However, the effectiveness of renewable energy initiatives in mitigating environmental pollution can be significantly influenced by the availability of skilled human capital. This study aims to examine the impact of renewable energy (RE), technical and vocational education and training (TVET), and their interaction on carbon emissions (CO2). We employ panel regression model to analyze data from the top ten countries generating electricity from renewable sources. The results show that RE is positively and significantly related to CO2 (β = 0.471, p < 0.01), indicating that increased reliance on RE can inadvertently raise emissions due to the intermittency of renewable sources and the need for backup from fossil fuels. In contrast, TVET is significantly and negatively related to CO2 (β = -0.253, p < 0.05), demonstrating that enhanced human capital through vocational training contributes to emission reductions. Moreover, the interaction between RE and TVET has a significant negative effect on CO2 emissions (β = -1.469, p < 0.01), suggesting that aligning vocational education with renewable energy initiatives leads to more effective carbon reduction. Furthermore, the interaction between RE and TVET has a negative and significant effect on CO2. These results imply that incorporating training in renewable energy technologies into the TVET curriculum enables countries to achieve their carbon reduction targets more effectively. The novelty of this study stems from demonstrating that aligning TVET with renewable energy initiatives and national or international sustainability goals can result in more coherent and impactful environmental policies.