Role of governance indicators and natural resources reserves on energy efficiency and productivity change: Evidence from developed and developing G20 countries

Efficient energy use is crucial for sustainable growth in G20 economies. This study examines how governance quality and resource endowments shape energy efficiency and total factor energy productivity from 1996 to 2020 using a two-stage framework. Findings indicate that developed countries benefit from strong political stability and effective institutions, which enhance energy performance, while corruption and early-stage renewable adoption can temporarily limit gains. In developing countries, governance challenges and resource-related paradoxes slow efficiency improvements, though strategic renewable deployment and institutional strengthening create opportunities for progress. These results highlight the different dynamics of energy performance across country groups and provide guidance for targeted policies to promote sustainable and resilient energy systems globally.