Explaining and modeling the reduction effect of low-carbon energy transition on energy intensity: Empirical evidence from global data

Abstract

In the process of global net zero, achieving low-carbon energy transition is an inevitable choice for sustainable development. Based on the annual panel data of 77 countries and regions from 2007 to 2019, this study uses multiple econometric models to study the effect and mechanism of low-carbon energy transition on energy intensity. In particular, the inverse cosine function is employed to measure the low-carbon energy transition at the global level from the consumer side. The baseline results show that low-carbon energy transition can significantly reduce energy intensity. At the same time, the external factors including the government effectiveness and the environmental policies stringency are proved to act as the threshold variables. Finally, the mechanism analysis shows that low-carbon energy transition can reduce energy intensity by improving green innovation and enhancing the utilization of sustainable energy. In summary, this study provides valuable policy recommendations and scientific arguments for promoting energy transition, accelerating green sustainable development, and achieving global net zero goals.