How does the development of the digital economy affect renewa

Abstract

Newswise – The digital economy is significantly driving the sustainable development of renewable energy around the world. However, it is not clear how this accelerates the development of renewable energy, in particular innovation in this field. This study uses a panel covering 65 countries over the period 2002–2019 and applies a dynamic panel design to explore the relationship between the digital economy and renewable energy innovations and analyze their impact mechanisms. Further research explores the heterogeneous impact of the digital economy on innovation. Key empirical findings suggest that the digital economy has a significant positive impact on renewable energy innovation. This effect is also observed in the case of solar, wind and biomass energy, but also geothermal energy. Moreover, the role of human capital, renewable energy investments and market potential can contribute to this positive effect. Countries with high income, high policy intensity and strong manufacturing bases were found to have a more significant positive impact. Therefore, governments are recommended to develop digital infrastructure and applications, integrate the digital economy with renewable energy, and improve renewable energy innovation.