Twin transition: The role of human capital development and digitalization on clean energy transition
Sami Ullah1, Anwar Khan2, Wang Suli3
1School of Economics and Management, Northeast Petroleum University, Daqing, 163318, China.
Abstract:
Transitioning to sustainable energy systems involves not only technological advancements but also the combined implementation of digital and green strategies, commonly referred to as the twin transition. This study examines the role of human capital in driving the energy transition in G20 economies from 2003 to 2023, with digitalization serving as a mediating channel. Using advanced panel econometric techniques, including Fully Modified Ordinary Least Squares (FMOLS), Canonical Cointegrating Regression (CCR), Method of Moments Quantile Regression (MMQR), and Instrumental Variable Generalized Method of Moments (IV-GMM), the analysis yields two key insights. First, human capital exerts a consistently positive effect on renewable energy consumption and generation in a consistent manner, underscoring its centrality in advancing clean energy adoption. Second, mediation analysis reveals that digitalization significantly amplifies this effect, providing empirical support for the twin transition paradigm. By integrating human capital development, digital transformation, and renewable energy adoption into a unified framework, the study provides new evidence for the twin transition literature and offers actionable guidance for policymakers seeking to design inclusive and resilient pathways toward decarbonization.
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