Unveiling energy efficiency and renewable electricity’s role in achieving sustainable development goals 7 and 13 policies

ABSTRACT

Germany has not yet made significant progress toward achieving SDGs 7 and 13. This challenge can be attributed to the underlying financialization problem in Germany, as well as implementation issues related to energy efficiency, particularly in coal and gas, and renewable energy consumption. Given these circumstances, Germany is facing challenges in reducing greenhouse gas emissions. Addressing this issue may necessitate a policy realignment, which is the primary focus of this study. In this context, our study employs various wavelet-based tools, including wavelet coherence, multivariate wavelet coherence, and wavelet-based causality, to delve into the co-movements, causality, and direction of causality between the load capacity factor (LF) and key factors such as energy efficiency (gas and coal), technological innovation, renewable electricity, and financial development, focusing on Germany during the period from 1990Q1 to 2020Q4. The results from wavelet coherence, corroborated by wavelet cohesion, indicate that in the short and medium term, improvements in coal efficiency, gas efficiency, financial development, and renewable energy are associated with an increase in LF, thereby contributing to ecological quality. Furthermore, the multivariate wavelet coherence results underscore the significant impact of considering or not considering the effect of a third variable in the interrelationship between LF and its determinants, with the effect being more pronounced when the third variable is taken into account. Although this policy framework primarily targets the objectives of SDG 13 and 7, its applicability extends to other EU nations. The primary significance of this study is its proposal of an SDG-focused policy framework.

KEYWORDS:

• Energy efficiency
• technological innovation
• renewable electricity consumption
• financial development
• Load capacity factor

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1. Energiewende represents Germany’s continuous shift towards a sustainable, eco-friendly, dependable, low-carbon and cost-effective energy provision.

Additional information

Funding

National Social Science Foundation’s Major Bidding Project (18ZDA027)