Role of Digitalization and Government Effectiveness in Sustainable Energy Transition: Evidence From Asian Economies

• Published in: International social science journal 2025-01
• Main Authors: Pal, Shreya, Mahalik, Mantu Kumar
• Format: Article
• Language: English
• ISSN: 0020-8701; 1468-2451
• DOI: 10.1111/issj.12556

This study explores how digitalization, through resident and non‐resident innovation initiatives, along with government effectiveness, affects the transition to renewable energy generation in five Advanced (Australia, Hong Kong, Japan, New Zealand and Singapore) and seven Emerging (China, India, Indonesia, Malaysia, Philippines, Thailand and Vietnam) Asian economies. The research uses annual data from 1985 to 2022 and applies several econometric methods to analyse the impact of these factors on renewable energy generation in a panel setup while also considering economic growth and human capital as key control variables. The findings reveal that residential innovation negatively impacts renewable energy generation in Advanced Asia but has a positive effect in Emerging Asia. Additionally, government effectiveness and non‐residential innovation hinder renewable energy generation in Emerging Asia while contributing positively in Advanced Asia. Economic growth and human capital show a positive association with renewable energy generation in both Advanced and Emerging Asian economies. These findings are robust to an alternative method used. Besides, additional robust results further indicate that artificial intelligence patents used as an alternative measure of digitalization hinder renewable energy generation in Emerging Asia and promote it in Advanced Asia. These findings provide valuable guidance for policymakers and stakeholders, highlighting the need for tailored strategies to drive sustainable energy transition in different economic contexts.