When does high-tech research investment enable green energy transition?

The allocation of public budgets to research and development plays a vital role in advancing climate welfare and facilitating the energy transition. Energy transition focuses on sustainable development goal −7 (SDG-7). By discussing the importance of energy transition and research and development, the current study elaborates on the pathway to resilient energy. This study investigates the influence of public research and development budgets on energy transition in 20 leading sophisticated economies over the period from 1995 to 2022. Using the method of moment quantile regression (MM-QR), the findings reveal a positive association between public renewable energy R&D budgets and the Energy Transition Index (ETI) across all quantile distributions. The effect gets weakened slightly at higher quantiles. While energy efficiency RD&D budgets demonstrate a positive association, the results are statistically insignificant. Public spending on storage/other technologies and high-tech industry demonstrates a negative impact in the lowest quantile, transforming to a positive and significant effect in higher percentiles. The influence of control variables is further explored. Institutional quality and technological innovation exert a positive and significant effect on energy transition across all quantiles, while economic complexity demonstrates a negative impact, particularly pronounced in lower development stages. The study suggests that governments within these leading economies should prioritize public R&D budgets, particularly for low-cost renewable energy solutions across domestic, industrial, and transportation sectors. Furthermore, policies suggestions is towards carbon-free electrification, electric vehicle adoption, and hydropower generation can accelerate progress.