Modelling energy trilemma and economic growth on renewables in N11 economies: Do economic complexity matter?

Abstract

Utilizing renewable energy is a necessity for accomplishing global agendas, including combating climate change and promoting sustainable development programs. Although much literature has investigated the nexus between energy sources and their affected regressors during the last few years, no appreciable emphasis is available in the previous studies respecting the influence of the energy trilemma index and economic expansion on the influence of the energy trilemma index and economic the renewables in N11 economies. Therefore, the current study analyzes the crucial influencing factors, including the energy trilemma, economic growth, economic complexity, financial development, and urban population, as drivers of renewable energy in N11 economics from 1990 to 2021 by utilizing a panel quantile regression approach. The empirical outcomes certify that renewable energy is positively connected with the energy trilemma, economic growth, financial development, and urban population, but not with economic complexity, which has the inverse result. As a result, legislators responsible for monitoring the deployment of renewables should stimulate their attempts to consider the energy trilemma dimensions into account when determining energy structural policies, increase the use of greener energy subsidies, pose high-carbon taxes, promote green financial innovation, and improve energy efficiency.

Keywords

• Renewable energy
• Energy trilemma index
• Economic growth
• Financial development
• Urbanization
• N11 economics