Powering the transition: geoscientific insights and policy levers for global renewable energy investment, pricing reforms and decarbonization pathways towards SDG 7 and SDG 13

Abstract

The rapid shift towards renewable energy sources underscores the urgent need for comprehensive and timely solutions to mitigate carbon emissions. This study provides a detailed analysis of the factors that led to a reduction in carbon emissions in a panel of eighty-three nations, including industrialized and developing countries, from 1996 to 2022. The study used the autoregressive distributed lag model to evaluate energy pricing systems, efficiency metrics, private investments, renewable energy utilization, government regulations, and efficiency standards throughout this pivotal transition. The findings show a significant negative relationship between renewable energy consumption and carbon emissions, prioritizing renewable energy to achieve the aim of decarbonization in both the short and long term. The current national policy support and international energy cooperation level must be revised to achieve global sustainability goals. Although achieving energy synergy across sectors is essential for long-term carbon emission reduction, the initial decrease in energy prices reduces emissions in the short term. Energy efficiency initially mitigates carbon emissions but ultimately exacerbates them. Private energy investment gradually increases carbon emissions, likely due to continued dependence on carbon-intensive technologies. These results indicate that it is crucial to prioritize renewable energy and promote collaboration across different sectors to achieve long-term sustainability. Additionally, governments should enhance energy efficiency and encourage private investment in environmentally friendly technologies to accomplish long-term decarbonization objectives.