Technological Innovation and Greener Energy Technology Adoption: Do Socioeconomic Conditions Make a Difference

Abstract

Industrialized countries and environmental protection agencies urge greener energy technology adoption and improvement in technological innovation. In this regard, the primary factor of greener energy adoption could be the budget allocated for renewable energy R&D, technological innovation, and socioeconomic conditions. The prime objective of this study is to explore the role of R&D for renewable energy adoption while considering economic and social factors. The present study analyzed quarterly data for Australia covering the period of 1994Q1–2019Q4. Furthermore, in this article, we employ the least absolute shrinkage and selection operator algorithm, ARDL bound testing, and a dynamic ARDL approach for a comprehensive empirical analysis. Empirical estimates reveal that R&D budgets for renewable energy, energy efficiency, and science and technology significantly promote greener energy adoption in the short term. However, the impact of the R&D budget on energy efficiency is positive in the long term. Technological innovation and economic growth are positively associated with green energy generation. From a policy perspective, an increase in budget allocation for R&D in renewables, energy efficiency, and technological innovation might act as a policy factor to bring environmental and economic sustainability.