How Does Trade Openness Impact Energy Transition Under Different Fiscal Policy and Technological Capability?

This study examines how trade and fiscal policies affect renewable electricity generation in 30 major economies. The analysis demonstrates that while import intensity promotes renewable electricity generation, export intensity has an insignificant impact. In terms of fiscal policy, fossil fuel subsidies hinder, whereas tax revenues support, the development of renewable electricity generation. Furthermore, both economic and technological capabilities play a positive role in supporting renewable electricity generation. The study also cautions that trade conflicts may impede the pace of the global energy transition.