Energy transition in newly industrialized countries: A policy paradigm in the perspective of technological innovation and urbanization

Abstract

Industrialization in Newly industrialized countries may be a potential retarding factor for sustainable future. This study examines that transitions towards green alternatives may be driven by technological innovation, urbanization, and industrialization using panel-corrected standard errors regression and quantile regression on data from 1985 to 2020. The empirical results suggest that technological innovation accelerates renewable energy and decelerates non-renewable energy. Conversely, urbanization and trade liberalization reduce renewable energy but increase non-renewable energy while increase in output positively impacts both renewable and non-renewable energy. The findings imply prioritizing technological innovation, sustainable urban planning and development and aligning policies for a successful and sustainable energy transition.

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