Do technology and renewable energy contribute to energy efficiency and carbon neutrality? Evidence from top ten manufacturing countries

Abstract

In this paper, we are addressing the implications of achieving carbon neutrality by 2050 or 2060, a topic raised at the 26th summit of the United Nations Climate Change Conference of the Parties. And likewise, to attain Sustainable Development Goal 7, which addresses an affordable and clean environment, we examine how technology and renewable energy contribute to energy efficiency within the crossroad of carbon neutrality in the top ten manufacturing countries. The current research applies a novel Method of Moment Quantile Regression (MMQR) from 1990 to 2020. The study's outcome shows that energy efficiency and renewable energy are efficacious and significant in curbing greenhouse gas among the designated countries. Again, the study unveils that the manufacturing sector contributes positively to greenhouse gas emissions. However, the interaction term between energy efficiency and the manufacturing sector dwindles the emissions across all the quantiles, unveiling that energy efficiency within the manufacturing sector can offset the industrial growth-induced emissions. The role of technology remains positive and significant in greenhouse gas emissions reduction. Finally, the findings support the validity of EKC hypothesis within the top ten manufacturing countries. Results from this study shall form huge policy directions for policymakers within these countries in achieving carbon neutrality.