Greening the energy future: Role of energy innovation as policy driver

Abstract

AbstractEnergy innovation is the backbone of a sustainable future. By harnessing the power of innovation, we can accelerate the transition to a greener energy future by improving energy efficiency, integrating renewable energy sources, developing energy storage solutions, and ensuring grid flexibility. As the renewable energy is being characterized as a major driver of sustainability, the innovational endeavors need to be directed in this pursuit. Based on this objective, this study explores the impact of energy innovation and education on renewable energy use by controlling the impact of economic growth, financial development, and oil prices for the OECD countries over the period of 1995–2020. The empirical results obtained from second‐generation panel methods indicate that energy innovation and education increase renewable energy use in these countries. Similarly, economic growth, financial development, and oil prices also sure the use of renewable energy. From these results, our study offers number of contributions to the literature, policy, and practice. More specifically, we argue that energy innovation and education can play an important role to increase the use of energy produce from renewable sources. Moreover, financial development can play a key role in the production of renewable energy in the long‐term projects by providing funding. The empirical results obtained from second‐generation panel methods suggest that energy innovation and education play a crucial role in increasing renewable energy use in these countries. Effective policy support is crucial in fostering innovation, promoting clean energy adoption, and creating opportunities for economic growth. Together, we can work toward a greener and more resilient energy future.