On public policies in the energy transition: Evidence on the role of socio-technical regimes for renewable technologies

Abstract

Our purpose is to contribute to the debate on the energy transition by investigating the role of social, technical, political, and cultural aspects in stimulating the export of renewable technologies (RTs). The literature draws attention to the need to complement public policies with a supportive socio-technical regime, even if evidence is scarce. We maintain that countries' capability in environment-related technologies, public concern and awareness of climate change, and understanding of its damaging effects are relevant drivers, alongside renewable energy policies. Moreover, we expect that such socio-technical drivers, if operating together, amplify the stimulus of policies. We test these arguments through a panel vector autoregressive (PVAR) model in first differences in the EU over the period 1996–2020. Due to heterogeneity across countries, we test the determinants on high-performing countries. Results confirm the role of public awareness and show that the export of RTs is also stimulated by increases in the share of environment-related technologies and understanding of climate change. Countries' capability in green technologies is also supported by increases in public awareness and understanding of the climate issue.