Abstract
For the first time, this study explores the implications of both aggregate and disaggregated energy-enhancing technology R&D investments on energy vulnerability in advanced economies. It also examines the moderating effects of energy productivity, digital innovativeness, institutional effectiveness, and eco-productivity. Through panel data analysis spanning 2000-2022, and employing the Driscoll-Kraay, bias-corrected, and frequency-domain Granger causality panel estimators, the study uncovers several findings with significant policy implications. The empirical results indicate that the listed variables exhibit convergence over the long term, giving credence to corresponding marginal effects evaluations. Further insights reveal that aggregate energy technology R&D investments exert considerable long-term effects in reducing energy vulnerability. Disaggregated analysis shows that energy efficiency and renewable energy technology R&D funding contribute more significantly to reducing energy vulnerability than other variants. In contrast, R&D funding for fuel, nuclear, hydropower, and energy storage technologies showed less effective results in mitigating energy vulnerability. These findings remained consistent following robustness checks with additional panel estimators, including the frequency-domain Granger causality test. The study suggests that policymakers should strengthen the energy vulnerability-reducing impacts of energy efficiency and renewable energy technology R&D through increased public funding. Private sector investment could also be encouraged, as a supportive environment would benefit all stakeholders. Aligning other forms of energy-enhancing technology R&D investments with additional green growth initiatives may be more beneficial, given the overarching goal of optimizing environmental sustainability. The study further outlines several policy options aimed at eliminating energy vulnerability.