Abstract Book of the 8th World Conference on Social Sciences
Year: 2025
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Does Innovation Empower Renewable Energy Diversification in Mitigating Energy-Related Uncertainty? A Comparative Panel Study of Emerging and Developed Countries
Himanshu Sekhar Panda, Mantu Kumar Mahalik
ABSTRACT:
In the current times, rising energy demand and disrupted supply chain intensify energy-related uncertainty. Considering the above issue, this study examines whether energy-related uncertainty could be lessened through the diversification of renewable energy consumption. Besides, this study also introduces innovation as a moderator, which may enhance the strength of renewable energy diversification in reducing energy-related uncertainty. The above-discussed interrelations are explored in both the context of emerging and developed economies, and answers in which region renewable energy diversification and innovation are more powerful in lessening the energy-related uncertainty. To examine the above nexus, this study uses two samples of balanced panels, one containing a sample of eight emerging countries and the other containing a sample of sixteen developed nations. The period for both the sample panels is from 1996 to 2022. In this line, according to the direction of diagnosis results, this study employs the Pooled Mean Group Autoregressive Distributed Lag (PMG-ARDL) as a baseline regression and uses Feasible Generalised Least Squares (FGLS) and System Generalised Method of Moments (SGMM) as robust methods. The results reveal that renewable energy diversification is more powerful for mitigating the energy-related uncertainty in emerging economies than in developed economies. The findings also show that innovation significantly empowers the emerging economies’ renewable energy diversification in lessening the energy-related uncertainty compared to the developed economies. Besides, it also reveals that while economic growth and better institutional quality substantially reduce energy uncertainty, geopolitical risk enhances the uncertainty of the energy market in both emerging and developed countries.
Keywords: Developed economies, Emerging economies, Energy uncertainty, Geopolitical risk, Innovation, Renewable energy diversification