The Impact of Economic Openness and Globalization on the Production of Renewable Energies: Empirical Evidence from OECD Countries

Abstract

The study aims to measure the impact of economic openness and globalization on the production of renewable energies in the Organization for Economic Cooperation and Development from 1995 to 2020. We measured the impact of economic openness, globalization, carbon emissions, and economic growth on the total production of renewable energies. We relied on econometric models using dynamic approaches estimated through the difference generalized moments method (GMM difference). The study concluded that economic openness, globalization, and carbon emissions lead to an increase in renewable energy production. Thus, a policy of economic freedom would support the energy transition process. Economic growth has a negative relationship with renewable energy production.