Energy transition at the crossroads of energy depletion and environmental policy stringency: Energy policy framework for energy giants in the indo-pacific belt

Abstract

This study addresses whether energy depletion leads to a fast-track energy transition in the context of four energy and mineral giants (i.e., Australia, China, India, and the USA) in the Indo-Pacific bloc. Specifically, we explore how pro-environmental technologies, environmental policy stringency, energy efficiency, economic complexity, and human capital affect energy transition in the region. Harnessing data from 1995 to 2020 and relying on the quantile moment approach (i.e., MMQR), with and without time-fixed effects, we note some intriguing findings that could reshape the energy policies in the surveyed nations. Our findings unfold as follows: Energy depletion does not foster energy transition in the studied territories. Instead, energy depletion inhibits the penetration of renewable energies. Moreover, pro-environmental energy technologies, energy efficiency, and environmental policy stringency support fast-track energy transition in the designated territories. Contrarily, economic complexity and human capital inhibit the fast-track energy transition during the studied period. Overall, we unveil that energy-rich nations still disregard the possible adverse effects of rapid energy depletion, which can severely affect the growth hypothesis and the environment. Key policies have been delineated at the end of this article.