Solar energy as a catalyst for green growth: A quantile regression analysis in G-20 economies

Abstract

The Group of Twenty (G-20) nations face a critical challenge in balancing economic growth, industrial development, and rising carbon emissions while advancing clean energy transitions. This study assesses how tourism, trade, industrialization, economic growth, and CO2 emissions influence solar energy consumption in G-20 economies from 2000 to 2021. Using the method of moments quantile regression to capture heterogeneous sectoral impacts, the research reveals that tourism and carbon emissions positively and significantly influence solar energy adoption, reinforcing its role in sustainable development. However, it is negatively associated with trade and industrial output, pointing to structural or policy barriers within traditional sectors. The results vary across quantiles, highlighting that the influence of solar energy depends on the level of economic development and adoption capacity. These findings offer timely insights for policymakers aiming to design targeted, sector-specific renewable energy strategies that balance growth with environmental responsibility. This study aligns with Sustainable Development Goals 7 and 9, as outlined in the United Nations’ 2030 Agenda for Sustainable Development, by highlighting the role of clean energy and sustainable industry in transforming G-20 economies.