Table of Contents

ABSTRACT

Renewable energy is being considered as a replacement for fossil fuels due to the increasing threats of energy scarcity and global warming. The use of renewable can fix the issues in a better way. While the spread of technology can play a role to expand it or hinder its growth. Therefore, the study aims to explore the heterogeneous impact of the level of technology on the use of renewable energy in top innovative economies. This study used the MMQR approach using data from 1990-2021. The results depict that technological innovation has an inverse relation to the use of renewable energy. Further, higher level of technology increases the use of renewable energy as depicted by positive square term of innovation. The study reveals an inverted N relation of technological innovation for the usage of renewable energy (RE). The MMQR estimates depict an increasing impact of technological innovation for higher users of renewable energy. The higher oil rents carry negative impact on use of RE in these economies. The analysis highlights the complex relationship (inverted N) between technological innovation and RE adoption. The analysis forwards implication that the initial innovation may not be primarily directed towards the renewable sector, therefore, policies should prioritize targeted innovation in renewable energy technologies. Additionally, as technological innovation increases, policies must ensure that these advancements translate into tangible increases in renewable energy usage, promoting sustainable energy practices across sectors. Therefore, the results carry implication for targeted innovation in RE technologies and demand policies to guarantee that technological advancements transform the energy mix in favor of renewable energy usage.

Keywords: renewable energy, Technological Innovation, MMQR estimates, natural resources