An analysis of how extended energy transition indicators, supply, and demand for key energy transition minerals impact the environment

The transition to renewable energy sources and global efforts to reduce greenhouse gas emissions have emphasized the role of key energy transition minerals. These minerals are essential for manufacturing and developing renewable energy technologies like solar panels, wind turbines, and batteries. The objective of this study is to examine the impact of extended transition indicators on CO2 emission factors from electricity and heat generation in selected Asian developing countries from 1998 to 2022, using demand for key energy transition minerals, total supply for key energy transition minerals, and natural resource management as control variables. Based on our empirical estimates, we observed that the increasing extended transition indicators significantly impact reducing CO2 emissions from electricity and heat generation. These indicators demonstrate a commitment to transitioning from fossil fuels and adopting cleaner and more sustainable energy sources. Conversely, increasing demand for crucial energy transition minerals, such as lithium and cobalt, harms CO2 emissions. These minerals are crucial for functioning renewable energy technologies, but their extraction and production processes can contribute to greenhouse gas emissions. It is the first comprehensive analysis of extended transition indicators on electricity and heat emission factors. Policy implications, research limitations, and future directions are discussed.