The role of technological development on renewable energy usage: An econometric analysis for G7 countries

Abstract

The aim of this study is to determine the relationship between technological development and renewable energy use. Within this framework, G7 countries were included in the scope of the review. Data for the countries in question between 1990 and 2015 were used. In order to determine the relationship between these two variables, Pedroni panel cointegration analysis was utilized. As a result, it has been determined that technological development is very effective in the use of renewable energy. Therefore, countries need to improve themselves technologically in order to increase the use of renewable energy. It is very important to have technological infrastructure in renewable energy investments. Hence, technological investments should have the priority in order to increase the use of renewable energy. With the help of this issue, it can be more possible to be successful in this kind of investment.