Examining the Effect of Privatization on Renewable Energy Consumption in the Digital Economy under Economic Patriotism: A Nonlinear Perspective

Abstract

This study is an effort to investigate the asymmetric effects of privatization and the digital economy on renewable energy consumption. The nonlinear quantile autoregressive distributed lag (QARDL) technique is used to estimate short and long-run analysis. Findings of the nonlinear QARDL model posit that the long-run positive shock in privatization promotes renewable energy consumption by increasing renewable energy consumption, while the long-run negative shock in privatization demotes renewable energy consumption by reducing renewable energy consumption. In the short run, the positive shock of privatization does not significantly impact renewable energy consumption, while the negative shock of privatization reduces renewable energy consumption. Moreover, information and communications technology (ICT), economic development, and financial development increase renewable energy consumption in the long run; however, in the short-run only financial development helps increase renewable energy consumption. The Wald test confirms the asymmetric impact of privatization on renewable energy consumption only in the long run. Based on these results, policymakers should thus take into account both positive and negative shocks in privatization when developing policies to encourage pro-environmental behavior.