Sustainable Energy Transitions in OECD Economies: Examining the Influence of Eco-Innovation, Alternative Energy Sources, and GDP on Energy Efficiency

Abstract

This study investigates the impact of eco-innovation, alternative energies, and GDP on energy efficiency (EE) in OECD countries from 1990 to 2021. Despite the recognized importance of EE in mitigating climate change, progress has been slow, and the influencing factors are not fully understood. Using panel data from OECD countries, we employ the CIPS unit root test, Westerlund cointegration technique, and CS-ARDL estimation to examine the long-run relationships between the variables. The results reveal a positive and significant impact of eco-innovation, alternative energies, and GDP on EE, suggesting that investments in environmentally friendly technologies, renewable energy sources, and economic growth can contribute to improved EE. The findings have important implications for policymakers seeking to promote sustainable energy transitions and highlight the need for further research on the complex interplay between technological, economic, and policy factors in shaping EE outcomes.