Examining the drivers of alternative energy in leading energy sustainable economies: The trilemma of energy efficiency, energy intensity and renewables expenses

Abstract

This study assesses 12 top-ranked countries in energy security, energy equity, and environmental sustainability to provide empirical insight into renewable energy development from the dimension of their energy sustainability success. Thus, the roles of energy efficiency, energy intensity, and research and development (R&D) expenditure in renewables in renewable energy development are examined by controlling for economic development over the period 1990–2019. A long-run country-specific analysis shows that renewable energy development is positively driven by energy efficiency, energy intensity, and research and development (R&D) expenditure in renewables in all the countries but Denmark where energy efficiency and energy intensity have no significant role. In the panel examination, results revealed that an increase in energy efficiency, R&D expenditure on renewables, energy intensity, and economic growth significantly contributes to the development of renewable energy. Additionally, accounting for cross-sectional dependence, the results from the robustness techniques further affirm the above-mentioned statistical evidence for the panel investigation. The result of the study benefits the environmental sustainability drive of the examined countries as it further urges for an increase in the minimum shares of renewable energy development and expansion of alternative energy portfolio through a more determined investment in clean technological innovations.