Quantile analysis of the role of renewable energy technology on carbon neutrality in organization for economic co-operation and development countries

Abstract

Purpose This study aims to investigate the relatedness between renewable energy technology (RET) and carbon intensity among 36 Organization for Economic Co-operation and Development (OECD) nations. Design/methodology/approach This method allows them to examine the relationship between RET and carbon intensity across different quantiles of the latter. Findings The findings reveal a negative association between RET and carbon emission in OECD countries, indicating that these nations can reduce carbon emissions by harnessing renewable energy technologies. The analysis shows a substantial and consistent effect of RET on carbon intensity. Furthermore, the incorporation of additional economic indicators, such as gross domestic product and trade openness, enhances the results and emphasizes their importance in modeling carbon intensity. This research underscores the vital role of RET in accurately modeling carbon intensity and advocates the development of targeted policies to maximize the benefits of renewable energy technologies. Originality/value Prior studies often use pooled ordinary least squares methodology, which can lead to skewed results due to the heterogeneous nature of panel datasets. To address this issue, they use a quantile regression model to assess the impact of RET on carbon intensity within OECD countries.