Understanding the Dynamics of Political Economy in Relation to Energy Transition for G7 Economies (2024)

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Understanding the Dynamics of Political Economy in Relation to Energy Transition for G7 Economies References References

Politická ekonomie 2024, Volume 72(2), Special Issue: 255-277|DOI:10.18267/j.polek.1423

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Understanding the Dynamics of Political Economy in Relation to Energy Transition for G7 Economies

Yanyan Qiu Understanding the Dynamics of Political Economy in Relation to Energy Transition for G7 Economies (1)ORCID..., Yan Yan Understanding the Dynamics of Political Economy in Relation to Energy Transition for G7 Economies (2)ORCID..., Ramez Abubakr Badeeb, Zeeshan Khan Understanding the Dynamics of Political Economy in Relation to Energy Transition for G7 Economies (3)ORCID..., Mohammed Moosa Ageli Understanding the Dynamics of Political Economy in Relation to Energy Transition for G7 Economies (4)ORCID...
Yanyan Qiu: School of Marxism, Shandong Technology and Business University, Yantai, China
Yan Yan: Budget Management Department, Huaian District Finance Bureau, Huaian, China
Ramez Abubakr Badeeb: Nottingham Business School, Faculty of Arts and Social Sciences; Nottingham University, Malaysia
Zeeshan Khan (corresponding author): Faculty of Business, Curtin University Malaysia
Mohammed Moosa Ageli: College of Applied Business Administration, King Saud University, Riyadh, Saudi Arabia

This research covers the literature gap by investigating the factors of economic expansion (GDP), total natural resources (TNRNT), political risk index (PRI) and technological innovation (TI) and their impact on the renewable electricity output (REOT) in the G7 economies, covering the period 1990-2022. The research utilizes novel MMQREG as the primary method, while BSQR is a non-parametric robustness check method. A pairwise Dumitrescu-Hurlin causality test is employed to find out the causal connection between variables. The diagnostic outcomes show that the modelled variables are static after the first difference while long-run equilibrium is also present. Moreover, the outcomes suggest that GDP negatively influences REOT across quantiles while TNRNT and PRI stimulate the use of REOT in G7 economies across quantiles. Moreover, TI positively influences REOT but is inconclusive across quantiles. The robustness check analysis provides similar and valid outcomes. Lowering political risk is also considered important for energy transition in terms of cleaner energy.

Keywords: GDP, total natural resources, political risk index, technological innovation, MMQREG, G7 economies
JEL classification: O13, O38, Q56

Received: June 12, 2023; Revised: October 3, 2023; Accepted: November 13, 2023; Prepublished online: January 26, 2024; Published: May 1, 2024 Show citation

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Qiu, Y., Yan, Y., Badeeb, R.A., Khan, Z., & Ageli, M.M. (2024). Understanding the Dynamics of Political Economy in Relation to Energy Transition for G7 Economies. Politická ekonomie,72(2),255-277. doi:10.18267/j.polek.1423

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