Transition to a sustainable energy balance and conversion factors in economic management: Basics for transitioning to a low-carbon economy

Transitioning to a sustainable energy balance is crucial for mitigating the impacts of climate change and achieving sustainable development. Understanding energy balances and utilizing conversion factors will aid in the transition to a low-carbon economy that benefits both the environment and the economy. This paper examines the impact of extended energy balances and conversion factors on clean energy transitions in the selected Asia-Pacific Economic Cooperation (APEC) countries from 1989 to 2021, using urbanization, natural resources, and energy intensity as moderating variables. Empirical estimates are based on cross-sectional dependence, slope heterogeneity, Westerlund ECM panel co-integration, and system dynamic panel data estimation. The findings of this study provide valuable insights into the relationship between energy transitions and the associated factors. The negative association between extended energy balance and energy transitions suggests that more tremendous efforts should be made to reduce energy consumption and promote energy efficiency. Urbanization, natural resources, and energy intensity also hurt energy transitions, indicating that sustainable practices and resource conservation are necessary to ensure successful energy transitions. By focusing on energy efficiency, renewable energy deployment, energy diversification, and the improvement of conversion factors, APEC countries can pave the way for a more sustainable and resilient energy future.