Green innovation, natural extreme events, and energy transition: Evidence from Asia-Pacific economies

Abstract

With 90% of global CO2 emissions being energy-related, promoting the transition to renewable energy is the first task of green development. The Asia-Pacific region accounts for more than half of the world's energy consumption, although progress on energy transition is still being made slowly. Thus, this research examines the effects of natural extreme events and green innovation on the sustainable goals for energy transition in 49 APAC economies between 2000 and 2019. The findings demonstrate that green innovation influences access to clean cooking (4.2%), encourages renewable energy consumption (3.9%), and lowers energy intensity (0.9%). While natural extreme events hamper progress on clean cooking access, they increase renewable energy consumption. By encouraging the modernization of industrial structures and renewable energy capacity, green innovation supports such an energy transition. The impact of green innovation differs significantly across economies, with non-OECD countries experiencing a greater influence than OECD countries.