Dynamics of macro-economic factors for energy transition and its reviews - A conceptual framework for G7 countries

The G7 countries aimed to accelerate the decarbonization of the energy sector to meet the IPCC's commitment to carbon neutrality by the year 2035. Despite efforts on a global scale, advanced countries are seeing a slowdown in the growth of renewable energy shares (RES). The current study develops a conceptual framework for the macroeconomic factors of the energy transition that evolved in G7 countries and addresses the challenges connected with achieving SDG 7.2 (RES). Globally, energy economists have widely recognised the convergence of the energy-growth-CO2 emission nexus. Prior studies have limited the focus on renewable energy drivers by validating the Environmental Kuznets Curve (EKC) and the causality results are inconclusive for any generalization. The present study investigates authentic databases and extensive literature on macroeconomic transition indicators to better understand the state of the energy transition and its research gaps. Furthermore, a framework is conceptualized incorporating macroeconomic factors of RES and supporting theories from the literature as a foundation to address the identified research gaps. By considering the technology investment (SDG 7.4) as a mediator variable between transition variables and RES, the proposed framework provides a management approach to the problem of energy transition. The multi-level perspective transition theory of socio-technological innovation and Triple Bottom Line concepts, which emphasise sustainability through social, economic, and environmental dimensions, are synchronised with the proposed conceptual framework. In addition, the present study addresses the analytical issues of the energy transition for a global audience by providing policy recommendations and decision-making solutions from a management perspective.