Can e-government facilitate the deployment of renewable energy?

Mỹ Huyền Trần
Oct 3
3 min read

Latest research article by Dr. Nguyen Phuc Canh, HAPRI's Senior Researcher.

Why This Matters?

This issue is critical because it lies at the intersection of two global challenges and priorities: green energy transition and effective governance.

Green Energy Context: Energy plays a central role in the climate challenge and is the key to finding solutions. With fossil fuels still accounting for more than 80% of global energy production, the green energy transition is a top priority for achieving climate and sustainability goals. Renewable energy is not only cheaper than non-renewable energy but is also healthier, economically meaningful, and generates employment.

The Role of Government: While energy transition can be costly for economic actors, effective governments can facilitate innovation, entrepreneurship, and green investment, thereby accelerating the shift toward renewable energy sources.

Research Gap: Although prior studies have examined the role of policies, government stability, and women’s participation, research on the role of e-government in the green energy transition remains limited. This study represents the first attempt in the literature to investigate the influence of e-government on the green energy transition, drawing on a comprehensive dataset covering 188 countries over nearly two decades (2003–2020).

Hypothesis

The possible influence of e-government on renewable energy consumption through channels of government effectiveness and the cost of doing business.

H1: E-government can increase renewable energy consumption.
H2a: E-government can enhance government effectiveness, thereby increasing renewable energy consumption. (The rationale is that improved effectiveness stimulates renewable energy adoption).
H2b: E-government can reduce the cost of doing business, thereby increasing renewable energy consumption. (The rationale is that lower business costs attract investment in green energy projects).

Key Findings

E-government and the influences on green energy transition.
E-government has a unidirectional causality on green energy transition.
E-government accelerates green energy transition.
Effect of e-government is stronger in the long run and be more prominent in developing countries.
The effects of e-government are transmitted through government effectiveness and cost of doing business.

Panel regression modeling, including the generalized method of moments (GMM), reveals that e-government initiatives significantly accelerate the green transition by increasing the share of renewable energy consumption in total final energy. Robustness checks, including a panel Granger causality test, confirm a statistically significant and unidirectional causal relationship running from e-government deployment to renewable energy consumption. A notable finding is that the long-term impact of e-government on boosting the transition to renewable energy is substantially greater than its short-term effect, implying that these reforms require time to fully influence economic agents' decisions. This positive influence is primarily transmitted through two key channels: e-government enhances government effectiveness (GE) and simultaneously reduces the cost of doing business (COB), both of which stimulate green energy adoption. Furthermore, the effects are largely driven by advancements in telecommunications infrastructure and e-participation. Heterogeneity analysis confirms that the observed impact of e-government is more pronounced in developing countries and non-OECD nations.

Policy Implications

Prioritize E-Government as an Environmental Strategy
Establish Long-Term Strategic Plans
Support ICT Infrastructure Development
Emphasize Telecommunications Infrastructure and E-Participation
Leverage E-Government to Reduce the Cost of Doing Business

Policymakers should strategically prioritize e-government development as a crucial instrument for accelerating the green energy transition. Given that the long-term impact of e-government substantially outweighs its short-term effect, governments need to establish firm, comprehensive long-term plans for both digital governance and green transformation. This positive influence is transmitted primarily by e-government's ability to enhance government effectiveness and reduce the cost of doing business, factors which in turn stimulate renewable energy deployment. Since the positive effect is found to be more pronounced in developing countries and non-OECD nations, international support should be directed not only toward specific renewable energy projects but also toward assisting these nations with ICT infrastructure development and smooth e-government adoption. Furthermore, policy efforts should specifically emphasize strengthening telecommunications infrastructure and promoting e-participation, as these components drive the observed positive effects.