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Energy mix diversification in emerging economies: An econometric analysis of determinants

Authors: B. Nibedita,M. Irfan
Publisher: Elsevier BV
Publish date: 2024-1
ISSN: 1364-0321 DOI: 10.1016/j.rser.2023.114043
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The article provides a comprehensive analysis of the determinants of energy mix diversification in E7 economies, but there are several areas that require clarification. The inconsistency between the short-run and long-run effects, particularly regarding energy efficiency and technological progress, raises concerns. In the short run, increased energy efficiency negatively impacts diversification, while in the long run, it is found to promote it. This contradiction suggests the model may not fully capture the dynamics between these variables, and further refinement could clarify this relationship. Additionally, the insignificant effect of globalization on energy diversification in the E7 economies is surprising, as existing literature typically associates globalization with the diffusion of renewable technologies and increased investment in green energy.

To improve the robustness of the findings, I recommend that the authors revisit the role of technological progress and its lagged effects, as well as explore how other factors, such as financial development or policy changes, interact with energy efficiency. Moreover, expanding the EKC model to include additional variables like urbanization or sectoral energy consumption could provide a more holistic view of the forces shaping energy diversification. These gaps could be addressed in a follow-up study, properly citing the current work to enlighten the community with more practical insights and a comprehensive analysis. By refining the models, incorporating additional variables, and further exploring the dynamics between short- and long-term factors, future research could offer a more accurate and actionable framework for policymakers in emerging economies to guide their energy diversification strategies effectively. This would enhance the study’s applicability and contribute to the ongoing efforts to achieve sustainable and secure energy transitions.

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