Innovation in technology: A game changer for renewable energy in the European Union?

Abstract

AbstractAs environmental solutions emerge, technological innovations are driving the global transition from fossil fuels to renewable energy. These innovations are game changers in transforming the energy sector and are driving the rapid expansion of renewable energy. Hence, we analyze the nexus between technological innovations and renewable energy in the European Union. The results reveal that technology has a meaningful impact on renewable energy in one‐third of countries. This influence is driven by advancements in energy generation, storage, infrastructure, supportive policies, and incentives, which are crucial in promoting technology innovation and adoption, accelerating the growth of renewable energy. On the other hand, renewable energy is causing technological innovation in one‐third of countries due to the development of renewable energy, which promotes targeted technological innovation to exploit resources, enhance integration, and increase efficiency. A balanced approach works for countries lacking a strong link between the two factors.