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Urbanization, technological innovation, and renewable energy adoption: Pathways to sustainable development and climate resilience in Japan

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  • Sagheer, Muneeb
  • Ashraf, Alia

Abstract

Japan's pursuit of sustainable development is challenged by its high urban density, reliance on fossil fuels, and vulnerability to climate change. While ambitious renewable energy targets have been set, the pathways to achieving them remain contested. Therefore, this research examines how Japan's adoption of renewable energy is shaped by the dynamic interactions of urbanization, technical advancement, economic expansion, and CO2 emissions. Using annual data from the World Bank covering 1990–2023, the analysis applies Dynamic Ordinary Least Squares (DOLS), Fully Modified Ordinary Least Squares (FMOLS), and Canonical Cointegration Regression (CCR) to ensure robust empirical estimates. The results reveal that urbanization and technological innovation significantly promote renewable energy adoption, whereas economic growth and CO2 emissions hinder progress. These findings extend the existing literature by demonstrating that Japan's energy transition requires not only technological advancements but also the strategic management of urbanization and a decoupling of growth from emissions. For policymakers, the study highlights the significance of supportive regulatory frameworks, investments in innovation, and diversification of energy sources to strengthen climate resilience and achieve long-term sustainability.

Suggested Citation

  • Sagheer, Muneeb & Ashraf, Alia, 2026. "Urbanization, technological innovation, and renewable energy adoption: Pathways to sustainable development and climate resilience in Japan," Energy, Elsevier, vol. 342(C).
    • Handle: RePEc:eee:energy:v:342:y:2026:i:c:s0360544225052636
    DOI: 10.1016/j.energy.2025.139621
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