Technological Innovation and Trade Orientation as Drivers of Renewable Energy Consumption: Panel Evidence from G7 Economies

Abstract Recent advancements in industrialization have sparked substantial interest among the academic community and policymakers regarding energy consumption. The consumption patterns of distinct energy types seem to be influenced by many national and international factors. In this essence, this st...

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Main Authors: Minyan Yu, Umar Farooq, Mosab I. Tabash, Abdullah A. Aljughaiman, Abdulateif A. Almulhim
Format: Article
Language:English
Published: Wiley 2025-03-01
Series:Global Challenges
Subjects:
Online Access:https://doi.org/10.1002/gch2.202400345
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author Minyan Yu
Umar Farooq
Mosab I. Tabash
Abdullah A. Aljughaiman
Abdulateif A. Almulhim
author_facet Minyan Yu
Umar Farooq
Mosab I. Tabash
Abdullah A. Aljughaiman
Abdulateif A. Almulhim
author_sort Minyan Yu
collection DOAJ
description Abstract Recent advancements in industrialization have sparked substantial interest among the academic community and policymakers regarding energy consumption. The consumption patterns of distinct energy types seem to be influenced by many national and international factors. In this essence, this study investigates the effects of technological innovation and trade orientation on renewable energy consumption (REC). Using panel data from G‐7 economies from 2000 to 2019, Panel EGLS (estimated generalized least square) and ARDL (autoregressive distributed lag) models are employed to check the regression. The analysis reveals that both technological innovation and export orientation have a significant and positive impact on REC. In contrast, import orientation negatively affects REC. The results highlight that technological advancements and a focus on export‐oriented trade strategies can significantly boost REC. Policymakers are encouraged to invest in research and development to advance renewable energy technologies and provide incentives for their adoption. These measures are crucial for achieving environmental sustainability and reducing pollution. The study provides valuable insights into how national and international trade dynamics influence renewable energy usage.
format Article
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issn 2056-6646
language English
publishDate 2025-03-01
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series Global Challenges
spelling doaj-art-0bd2ee61261c47c7ac982952bea113ef2025-08-20T01:58:00ZengWileyGlobal Challenges2056-66462025-03-0193n/an/a10.1002/gch2.202400345Technological Innovation and Trade Orientation as Drivers of Renewable Energy Consumption: Panel Evidence from G7 EconomiesMinyan Yu0Umar Farooq1Mosab I. Tabash2Abdullah A. Aljughaiman3Abdulateif A. Almulhim4Jiangxi Modern Polytechnic College Nanchang 330095 ChinaSchool of Economics and Finance Xi'an Jiaotong University Xi'an Shaanxi Province 710049 P. R. ChinaCollege of Business Al Ain University Al Ain 64141 United Arab EmiratesFinance Department School of Business King Faisal university Al hafouf 31982 Saudi ArabiaFinance Department Business School king Faisal University Al hafouf 31982 Saudi ArabiaAbstract Recent advancements in industrialization have sparked substantial interest among the academic community and policymakers regarding energy consumption. The consumption patterns of distinct energy types seem to be influenced by many national and international factors. In this essence, this study investigates the effects of technological innovation and trade orientation on renewable energy consumption (REC). Using panel data from G‐7 economies from 2000 to 2019, Panel EGLS (estimated generalized least square) and ARDL (autoregressive distributed lag) models are employed to check the regression. The analysis reveals that both technological innovation and export orientation have a significant and positive impact on REC. In contrast, import orientation negatively affects REC. The results highlight that technological advancements and a focus on export‐oriented trade strategies can significantly boost REC. Policymakers are encouraged to invest in research and development to advance renewable energy technologies and provide incentives for their adoption. These measures are crucial for achieving environmental sustainability and reducing pollution. The study provides valuable insights into how national and international trade dynamics influence renewable energy usage.https://doi.org/10.1002/gch2.202400345export orientationimport orientationrenewable energytechnological innovationtrade orientation
spellingShingle Minyan Yu
Umar Farooq
Mosab I. Tabash
Abdullah A. Aljughaiman
Abdulateif A. Almulhim
Technological Innovation and Trade Orientation as Drivers of Renewable Energy Consumption: Panel Evidence from G7 Economies
Global Challenges
export orientation
import orientation
renewable energy
technological innovation
trade orientation
title Technological Innovation and Trade Orientation as Drivers of Renewable Energy Consumption: Panel Evidence from G7 Economies
title_full Technological Innovation and Trade Orientation as Drivers of Renewable Energy Consumption: Panel Evidence from G7 Economies
title_fullStr Technological Innovation and Trade Orientation as Drivers of Renewable Energy Consumption: Panel Evidence from G7 Economies
title_full_unstemmed Technological Innovation and Trade Orientation as Drivers of Renewable Energy Consumption: Panel Evidence from G7 Economies
title_short Technological Innovation and Trade Orientation as Drivers of Renewable Energy Consumption: Panel Evidence from G7 Economies
title_sort technological innovation and trade orientation as drivers of renewable energy consumption panel evidence from g7 economies
topic export orientation
import orientation
renewable energy
technological innovation
trade orientation
url https://doi.org/10.1002/gch2.202400345
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AT umarfarooq technologicalinnovationandtradeorientationasdriversofrenewableenergyconsumptionpanelevidencefromg7economies
AT mosabitabash technologicalinnovationandtradeorientationasdriversofrenewableenergyconsumptionpanelevidencefromg7economies
AT abdullahaaljughaiman technologicalinnovationandtradeorientationasdriversofrenewableenergyconsumptionpanelevidencefromg7economies
AT abdulateifaalmulhim technologicalinnovationandtradeorientationasdriversofrenewableenergyconsumptionpanelevidencefromg7economies