Green technologies, government stability, and green energy transition in a globalized world: evidence from E-7 nations.

Abstract

Unsustainable development and rising environmental degradation are major challenges for emerging nations that tend to promote human welfare by expanding economic development. Green energy transition (GETR) can help these nations to continue their development, reduce fossil fuel utilization, and achieve environmental sustainability. However, previous literature overlooks the importance of green technologies, government stability, and economic globalization in the GETR process. Accordingly, this research takes a step forward and assesses the impacts of green technologies (GT), government stability (GOV), and economic globalization (EGL) on green energy transition including population density (POP) and economic growth (GDP) in emerging seven (E-7) countries from 1992 to 2020. The research applied the "continuously updated fully modified (CuP-FM)" methodology to acquire the long-run findings robust to endogeneity stationary regressors, autocorrelation, and cross-sectional dependence (CD). The results highlighted that green technologies can be enhanced to accelerate the energy transition process since GETR and green technologies are positively connected. Also, government stability and economic globalization support the green energy transition. However, both population density and economic growth obstruct the energy transition process. The Emirmahmutoğlu and Kose test unveiled that green technologies, economic globalization, and government stability Granger cause the green energy transition. Based on these findings, policies are directed to promote the GETR by enhancing green technologies, economic globalization, and government stability for achieving ecological sustainability.