Factors determining renewable energy demand behavior: service sector development, private sector involvement, and...

Energy is considered the engine of growth due to its indispensable role in fueling economic activities. However, energy is one of the primary contributors to environmental degradation. In addition, conventional energy sources are depleting quickly due to the over-consumption of these sources, raising the issue of energy security. The solution to these above-stated issues is increasing renewable energy consumption. There is evidence that service sector development, private sector development, and human resource management help improve energy efficiency; however, their role in increasing renewable energy demand is debatable. This analysis fills the vacuum by examining the effect of service sector development, private sector development, and human resource management on renewable energy demand across four major regions: Asia, America, Africa, and Europe, spanning from 1998 to 2021. The analysis depends on the CS-ARDL model that can estimate the short and long-run results by addressing the model's cross-sectional dependence. The model estimates confirm that service sector development, private sector, and financial development escalate the long-run renewable energy consumption in all regions except Africa. Human resource enhances renewable energy consumption globally, in Europe and America. Likewise, GDP and carbon emissions stimulate long-run renewable energy consumption in all regions; however, trade only encourages renewable energy consumption globally and in Europe. The service sector development, financial development, carbon emissions, and trade significantly encourage short-run renewable energy consumption in one or two regions. In contrast, the GDP positively and significantly connects to the short-run renewable energy consumption in almost all regions. Therefore, policymakers should focus on increasing the role of human resources, services, and private sector development in the economy.