Achieving the targets of sustainable development goals 7 and 12 in Norway: An application of wavelet tools

Abstract

This research fills a critical gap in previous studies by examining Norway from new and innovative perspectives. First, it provides a comprehensive analysis of the impact of technological innovations (TI) and political globalization (PG) on renewable energy intensity (REI) using updated data spanning from 1980Q1 to 2022Q4. Second, it uniquely incorporates financial institutions (FIS) and financial markets (FM) as key variables, which have been largely overlooked in earlier studies. Third, the study utilizes advanced wavelet tools, offering methodological improvements that ensure robust empirical estimates and policy relevance across different time periods. Finally, it introduces the novel application of wavelet Granger causality in this context, providing fresh insights into the dynamic relationships shaping REI. The results of the wavelet coherence show that FM and REI exhibited positive coherence in the late 1990s and early 2010s, while PG showed negative coherence in the 2000s. In addition, TI consistently displayed positive coherence, with partial and multiple wavelet coherence results highlighting the combined influence of FIS, FM, and TI in shaping REI over time. These findings provide valuable insights for policymakers in Norway, enabling them to implement informed policy adjustments aimed at increasing renewable energy intensity.