Renewable energy consumption in Mercosur region: The role of human resources and green innovative technology

Abstract

The Mercosur countries which include Argentina, Brazil, Paraguay, Uruguay, and Venezuela have all shown rising interest on renewable energy as the follow. This change is occasioned by the desire to overcome the reliance of energy on fossil-based products and combat the impacts of climate change. The global demands for sustainable development for the countries of the world press on the Mercosur countries to implement policies and strategies that support styles and initiatives to increase the consumption of renewable energy in an effort to enhance green innovation. This study examines renewable energy consumption in Mercosur Region and the role of human resources and green innovative technology. For this purpose, used Panel data of Mercosur countries and applied CS-ARDL model. The study show comparing Short-Term and Long-Term Short-term marginal or negative impacts give way to long-term positive and substantial benefits for a number of variables (such as GDP, government effectiveness, and green innovation). This implies that certain variables, such economic development and green innovation, have a delayed reaction to successfully influencing the dependent variable. Urbanization has a crucial role in promoting outcomes like the use of renewable energy, as shown by its continuously high positive short- and long-term benefits. Given their long-term advantages despite their less pronounced short-term effects, policymakers need to concentrate on promoting green innovation and economic development. Over time, significant gains may be made by enhancing government efficacy and human capital. A strong adjustment mechanism is shown by the substantial error correction term, which guarantees that short-term deviations will eventually converge to a stable long-term connection.