The linkages between energy efficiency, renewable electricity, human capital and inclusive growth: The role of technological development

Abstract

This study highlights the important role of strategic policy interventions in promoting sustainable economic prosperity and social equity in OECD economies. It specifically focuses on the positive effects of technological development, energy efficiency, renewable electricity, and human capital on inclusive growth across 35 OECD economies from 1990 to 2019. We employed cross-sectional augmented distributed lag, fully modified ordinary least squares, and dynamic ordinary least squares to analyze the data. The long-run and short-run estimates show that technological development, energy efficiency, renewable electricity, human capital, and renewable energy consumption have positive effects on inclusive growth. Based on these findings, we propose that the government should provide funds for innovation and technological development, and it improves access to information and services, it increases productivity and efficiency, creates new job opportunities, and promotes inclusive growth. Moreover, the government should promote energy efficiency, which will help in cost savings, job creation, improved access to energy, inclusive growth, and environmental benefits.