Energy Transition, Carbon Intensity, and Sustainability Reporting Adoption: The Moderating Role of Government Effectiveness in a Cross-Country Analysis

Purpose: This study investigates the relationship between energy transition indicators, carbon intensity and sustainability reporting adoption. The aim of the study is to examine how renewable energy consumption, CO₂ emissions per capita and energy intensity influence the prevalence of corporate sustainability reporting, while also assessing the moderating role of government effectiveness. Design/Methodology/Approach: The study uses a balanced panel dataset of 50 developing countries from 2015 to 2024. Pooled Ordinary Least Squares (OLS), Fixed Effects (FE) and Random Effects (RE) panel regression models were applied. The Government Effectiveness Index (GEI) was used as a moderating variable to examine whether institutional capacity strengthens or weakens the relationship between environmental performance indicators and sustainability disclosure. Findings: The findings reveal that renewable energy consumption has a significant positive effect on sustainability reporting prevalence, while CO₂ emissions per capita show a significant negative association. Government effectiveness was found to be a strong positive moderator across all model specifications. Implications/Originality/Value: The study concludes that energy transition and institutional quality are important drivers of sustainability reporting in developing countries. It provides policy implications for multilateral institutions, national regulators and corporate governance frameworks seeking to improve sustainability disclosure.