Technology readiness and energy transitions: Evidence from renewable energy finance and institutional quality
Year: 2026
Type: article
Abstract: Although the developed world has shifted to clean energy, most developing nations still largely depend on fossil fuels and experience endemic energy deficit. In order to capture the multidimensionality of the energy transition (ET), this paper uses two alternative proxies of ET, which are renewable electricity supply (RET) and the share of fossil fuels in aggregate energy use. This paper also examines how the technology readiness (TR), renewable energy finance (REF), energy intensity, and institutional quality affect the ET across a sample of 32 emerging countries over a sample period between 2000 and 2023 through complementary panel-data econometric framework. Our empirical results broadly indicate that REF and TR are positively associated with renewable energy and decreasing reliance on traditional fossil fuels, although the magnitude and statistical significance vary across estimators. Further, the role of an institutional quality is context-specific. The robustness of the empirical findings is assessed through several complementary approaches, including an alternative dependent variable, different control variables, eliminating potential outliers, two-step System-GMM method for addressing likely endogeneity, and CCEMG estimation to account for unobserved common factors and heterogeneous slope coefficients. These empirical outcomes offer important policy guidelines for designing ET strategies by collectively focusing on renewable-energy investment, technological capability, energy-efficiency improvements, and context-sensitive institutional reforms in developing economies.
Authors: Deepa, Ashish Kumar
Institution: Guru Gobind Singh Indraprastha University
Language: English
Field: Energy
Domain: Physical Sciences
Open Access status: gold
Estimated APC paid: $2,350
OpenAlex ID: W7223154718