Per capita renewable energy consumption in 116 countries: The effects of urbanization, industrialization, GDP, aging, and trade openness

Abstract

Renewable energy is one of the key clean production pathways to achieve the global energy transition and combat climate change. This research is aimed to investigate the impact of changes in social structure, economic structure, demographic structure, and trade structure on per capita renewable energy consumption. Four threshold panel regression models are developed using the updated data of 116 countries. In these models, social structure, economic structure, demographic structure, and trade structure are set as both explanatory variables and threshold variables, whereas per capita renewable energy consumption is set as the explained variable. These models verify the existence of the threshold (1% confidence level), which indicates that there is a non-linear relationship between social-, economic-, demographic- and trade-structure changes and renewable energy consumption. Changes in the social structure (urbanization level) promote per capita renewable energy consumption, and when it crosses the threshold, this promotion effect become more significant. Changes in the economic structure (industrialization level) inhibits the growth of per capita renewable energy consumption. However, as industrialization level rises above the threshold, this inhibition is weakening. Changes in the demographic structure (population aging) and trade structure (trade openness) contributes to the growth of per capita renewable energy consumption. Moreover, after the demographic structure and trade structure cross the threshold value, this promotion strengthened. The above findings provide theoretical support for policymakers to formulate energy and population policies.