The effects of green technology and globalization on energy demand in emerging economies

Preserving energy security and promoting sustainable development in the face of globalization constitute essential challenges. Hence, this study focuses on how green technology innovation (GRTI) and globalization (GLOB) influence renewable (RE) and non-renewable (NRE) energy demand, employing panel data from 15 emerging nations from 1990 to 2023. The study discloses major insights employing several panel data approaches to tackle cross-sectional dependency, slope heterogeneity, and structural breaks in cointegration. The results indicate that a 1 % change in GRTI leads to a 0.13 % rise in REN at a 1 % significance level, whereas its impact on NRE is negligible, reducing it by 0.01 % in the long run. Conversely, a 1 % increase in GLOB leads to an insignificant 2.62 % rise in REN and a significant 1.02 % increase in NRE at the 5 % significance level. Besides, in terms of aggregate energy consumption, GRTI has an unfavorable impact, whereas GLOB holds a positive impact. Notably, the interaction between regulatory quality (REQ) and IVA implies a substantial fall, although the interaction between GLOB and REQ remains promising for aggregate energy demand. Finally, the COVID-19 epidemic markedly enhanced environmental awareness and energy-saving behaviors beyond the explanatory variables. Policies should encourage green technology innovation and prudent globalization to conserve energy demand.