Digital economy, shadow economy, and economic freedom: implications for renewable energy transitions in OECD countries
摘要
This study addresses a critical gap in the renewable energy literature by jointly examining the roles of the digital economy, the shadow economy, and economic freedom in shaping renewable energy consumption (REC) across OECD countries—three dimensions typically analysed in isolation. Utilising panel data from 2005 to 2022, the study applies the Method of Moments Quantile Regression (MMQR) alongside multiple robustness techniques to uncover distributional effects. The research is guided by three central questions: (1) How does digitalisation affect REC across different quantiles of consumption? (2) In what ways does the shadow economy constrain or complement renewable energy uptake? (3) Does economic freedom amplify or mitigate the effects of digital and informal economic structures on REC? Novel interaction terms (DEEF and SEEF) are introduced to capture the institutional moderating effects of economic freedom on the impacts of the digital and informal sectors. Findings reveal a robust positive effect of the digital economy on REC, especially in countries with higher adoption levels. In contrast, the shadow economy exerts a dual influence—impeding formal investments while enabling informal off-grid renewable energy practices. Economic freedom alone shows an ambiguous effect, enhancing REC only when paired with environmental safeguards. The study’s originality lies in its integrated institutional framework, which uncovers asymmetric effects and informs tailored green policy strategies across heterogeneous OECD contexts.