TY - JOUR
T1 - Energy Diversification and Its Determinants
T2 - Evidence from Developed and Developing Countries
AU - Solarin, Sakiru Adebola
AU - Opoku, Eric Evans Osei
AU - Bello, Mufutau Opeyemi
N1 - Publisher Copyright:
© The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature 2025.
PY - 2025/12
Y1 - 2025/12
N2 - This study pioneers empirical studies on the economic and demographic determinants of energy diversification using a recently constructed energy diversification index. With a dataset of 65 countries involving panels of middle-income, high-income, and G20 countries, factors such as income level, urbanization, foreign direct investment, infrastructure, and industrialization were analyzed using several econometrics techniques including the Driscoll-Kraay standard errors, a generalized method of moments approach, and a panel data quantile regression approach. The results suggest that in most cases, rising income and urbanization enhance energy diversification, especially at higher quantiles. Furthermore, more foreign direct investment leads to less energy diversification, except in middle-income countries. The results also imply that more infrastructural facilities and industrialization lead to more diversification in high-income countries.
AB - This study pioneers empirical studies on the economic and demographic determinants of energy diversification using a recently constructed energy diversification index. With a dataset of 65 countries involving panels of middle-income, high-income, and G20 countries, factors such as income level, urbanization, foreign direct investment, infrastructure, and industrialization were analyzed using several econometrics techniques including the Driscoll-Kraay standard errors, a generalized method of moments approach, and a panel data quantile regression approach. The results suggest that in most cases, rising income and urbanization enhance energy diversification, especially at higher quantiles. Furthermore, more foreign direct investment leads to less energy diversification, except in middle-income countries. The results also imply that more infrastructural facilities and industrialization lead to more diversification in high-income countries.
KW - Augmented energy ladder hypothesis
KW - Energy diversification
KW - Energy transition
KW - Panel quantile estimations
UR - https://www.scopus.com/pages/publications/105024106227
U2 - 10.1007/s13132-025-02638-4
DO - 10.1007/s13132-025-02638-4
M3 - Article
AN - SCOPUS:105024106227
SN - 1868-7865
VL - 16
SP - 18501
EP - 18526
JO - Journal of the Knowledge Economy
JF - Journal of the Knowledge Economy
IS - 6
ER -
