The twin innovation-renewable energy production of Italian provinces: New evidence from spatial panel analysis

While previous research has explored the determinants of renewable energy generation, this analysis is the first to jointly investigate the specific impact of technological innovation and digital infrastructure across multiple renewable sources within a spatial framework. Focusing on Italian provinces between 2016 and 2021, the study explores the role of innovation and ultra-wideband (UWB) infrastructure in shaping renewable energy generation. Using a granular dataset covering 106 provinces, we apply spatial econometrics to estimate the impact of innovation-related variables on four types of renewable energy: photovoltaic, hydropower, wind, and bioenergy. This study also captures spillover effects between neighboring provinces to assess interdependencies. Findings indicate a significant spillover effect across provinces, with innovation variables positively influencing energy generation when significant. However, UWB infrastructure, when statistically significant, exhibits a sharp negative impact. These results suggest that while digital technologies may optimize energy consumption, they could inadvertently reduce production levels—possibly due to inadequate storage devices.