What Has Driven the Acceleration of the Renewable Energy Transition? Evidence From a Global Perspective

Abstract

The finite nature of fossil fuels and growing environmental concerns have spurred the global shift towards renewable energy systems. This study applies the Energy Transition framework to assess how system performance and transition readiness influence the adoption of renewable energy. Using Partial Least Squares Structural Equation Modelling (PLS‐SEM) on data from 115 countries in the World Economic Forum database, the results reveal that both system performance and readiness for transition are pivotal factors in facilitating the energy transition process. Moreover, our findings reveal that the level of economic development is equally prominent in enabling energy transition pathways. This study contributes valuable insights into the interplay between system performance, transition readiness, and economic development, shedding light on the complex dynamics that underpin successful renewable energy adoption. Further, as nations grapple with the urgent need for cleaner and more sustainable energy sources, our findings underscore the necessity of a broader approach to tackle the challenges of energy transition effectively. Therefore, policymakers should also enhance the pace of economic development to accelerate the transition towards renewable energy systems.