Investigating the role of entrepreneurship in advancing renewable energy for sustainable development: Evidence from a System‐GMM panel data approach

Abstract

Entrepreneurship serves as a driving force for the advancement of renewable energy. Entrepreneurs are often at the forefront of innovation, bringing new technologies and business models to the clean energy sector. This study conducts a comprehensive examination of the intricate relationship between entrepreneurship and renewable energy production in 23 developed countries throughout the period from 2000 to 2020. For this purpose, the impact of 11 sub‐index of entrepreneurship on renewable energy production has been estimated. The method is dynamic panel data with the system GMM (Generalized Method of Moments) technique. After estimating 11 entrepreneurship sub‐indices effects separately on renewable energy production, the impact of each is ranked. The findings showed that the impact rank of 11 sub‐indexes of entrepreneurship on renewable energy production is as follows: Commercial and professional infrastructure (CP), R&D transfer (RD), Physical and services infrastructure (PS), Governmental support and policies (GS), Taxes and bureaucracy (TB), Governmental programs (GP), Internal market openness (MO), Internal market dynamics (MD), Post‐school entrepreneurial education and training (PE), Basic school entrepreneurial education and training (BE), and Cultural and social norms (CS). The importance of Commercial and professional infrastructure (CP) as an entrepreneurship sub‐indices is 2 times more than R&D transfer (RD), so Commercial and professional infrastructure is vital for the development of entrepreneurship that affects the production of renewable energies. This study not only underscores the central role of entrepreneurship in driving the adoption of renewable energy but also provides essential insights into key policy measures to accelerate the transition to sustainable energy sources. It highlights the urgency of addressing environmental challenges and emphasizes the imperative for collaboration among governments, NGOs, and educational institutions to achieve these critical goals.