Role of Corruption and Governance Quality on Green Electricity Transition: Learning Through the Lens of Economic Complexity and Sustainability
Role of Corruption and Governance Quality on Green Electricity Transition: Learning Through the Lens of Economic Complexity and Sustainability

Summary/Abstract: The transition towards green and clean energy sources is the need of the day and a key targetfor several economies across the globe. Besides, emerging economies also aim to minimizefossil fuel dependence, promoting the adoption of green electricity. However, several obstacles,including governance, corruption and economic-related issues, are forthcoming in attainingsustainability in the context of green energy. This research examines seven emerging economiesfrom 1990 to 2020. The study uses novel panel diagnostic assessment approaches, which validatethe slope heterogeneity and cross-sectional dependence and confirm the cointegration betweenthe study variables. Employing the method of moments quantile regression, this researchconcludes that corruption and governance quality adversely influence the transition to greenelectricity. On the other hand, the influence of economic complexity, research and developmentexpenditures and per capita GDP is positive and significant. These results are robust as validatedby estimators such as mean group and fully modified ordinary least squares. Furthermore, a twowayGranger causality exists between regressors and green energy transition, which allows thisresearch to offer appropriate policy implications. This study recommends improving institutions,strengthening bureaucracy, enhancing accountability and investing in research and development, green technologies and human capital to encourage green energy transition.

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