Work

The impact of government-funded renewable energy R&D on its consumption

Year: 2025

Type: article

Abstract: With the increasing urgency to shift away from fossil fuels, many governments are boosting their funding for renewable energy research and development (R&D). The fundamental premise behind these efforts is that government-funded renewable energy R&D contributes to increased consumption of renewable energy. This paper examines this premise employing panel data from 26 countries between 1974 and 2022. Based on panel cointegration methods and panel causality tests, this study finds robust evidence of a statistically significant positive long-term relationship between government-funded renewable energy R&D and renewable energy consumption. It also identifies unidirectional causality running from the former to the latter.

Source: Journal of Policy Modeling

DOI: 10.1016/j.jpolmod.2025.06.001

Author: Dierk Herzer

Institution: Helmut Schmidt University

Language: English

Topic: Energy, Environment, Economic Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Affordable and clean energy, Climate action

Open Access status: hybrid

Estimated APC paid: $1,500