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Unleashing the influence of industrialization and trade openness on renewable energy intensity using path model analysis: A roadmap towards sustainable development

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  • Wang, Rongji
  • Laila, Ume
  • Nazir, Rabia
  • Hao, Xibin

Abstract

In the globalized world, the complicated relationship between macroeconomic variables has resulted in several challenges that have a diversified influence on renewable energy intensity and sustainable development. Accordingly, maintaining a desirable level of renewable energy intensity necessitates comprehensive research into the numerous impacts of its elements and the implementation of proactive strategies to address them. However, studies focusing on assessing the influence of industrialization and trade openness on China's renewable energy intensity are limited. To address this research gap, this study seeks to develop a path model to examine this relationship by accommodating the mediating role of technical innovations and economic development. Empirical results reveal that industrialization positively influences renewable energy intensity, while trade openness negatively affects it. On the flip side, the mediation results demonstrate that technical innovation negatively mediates the linkage between industrialization and renewable energy intensity. In a similar vein, economic development negatively mediates the association between trade openness and renewable energy intensity. Based on empirical findings, essential and valuable policy considerations related to renewable energy intensity and its variables' penalties are put forward while simultaneously improving sustainable development practices.

Suggested Citation

  • Wang, Rongji & Laila, Ume & Nazir, Rabia & Hao, Xibin, 2023. "Unleashing the influence of industrialization and trade openness on renewable energy intensity using path model analysis: A roadmap towards sustainable development," Renewable Energy, Elsevier, vol. 202(C), pages 280-288.
    • Handle: RePEc:eee:renene:v:202:y:2023:i:c:p:280-288
    DOI: 10.1016/j.renene.2022.11.035
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