Do energy patents and energy prices drive the shift toward sustainable energy sources? A wavelet quantile-based analysis

Abstract

While the significant role of technological innovation in promoting renewable energy has been extensively explored in the literature, limited attention has been paid to the impact of energy patents, particularly clean energy patents and fossil fuel patents. This study pioneers an investigation into the effects of energy patents and energy prices on renewable energy consumption. The study utilizes data from 2000Q1 to 2023Q4 and, due to the nonlinear nature of the series, applies wavelet quantile-based methods. Specifically, it introduces the wavelet quantile cointegration approach to evaluate cointegration across different quantiles and time horizons, along with the wavelet quantile-on-quantile regression method. The results confirm cointegration across different periods and quantiles, highlighting the significant relationships between energy patents, economic factors, and renewable energy consumption. Furthermore, we found that fossil energy patents negatively affect renewable energy consumption, while clean energy patents have a similar but weaker effect, especially in the short term. In addition, higher energy prices promote renewable energy adoption while economic growth positively influences renewable energy consumption, particularly in the short term. The study formulates specific policies based on these findings.

Keywords

Energy price / Clean energy patents / Fossil fuel patents / Renewable energy consumption / Environmental sustainability

Availability of data and materials

Data will be made available on request.

CRediT authorship contribution statement

T.S. Adebayo: Investigation, Funding acquisition, Formal analy-sis, Data curation, Conceptualization. V.O. Olanrewaju: Resources, Project administration, Methodology, Investigation. B. Uzun: Writ-ing - original draft, Visualization, Supervision, Funding acquisition, Data curation.

Declaration of competing interest

The authors declare that they have no known competing finan-cial interests or personal relationships that could have appeared to influence the work reported in this paper.

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