The Effects of Social Concern about Renewable Energy Sources: Oil and Gas Industry Responses to The New Environmental Paradigm
Abstract
Growing social acceptance of renewable energy sources is critical for the oil and gas industry’s future. Globally, societies are shifting their opinions and demanding transparency from oil and gas firms about their greenhouse gas emissions, which cause global warming and climate change. Community groups use social media platforms to bring all stakeholders together to express their views about the negative effects of the oil and gas industry. Shifting social attitudes about the oil and gas sector are influencing governments to consider policy alternatives to oil and gas industry emissions. In turn, government regulators are scrutinising oil and gas sector emissions and demanding carbon-free energy alternatives, which is causing major challenges for the industry. Responding to these challenges, oil and gas companies are trying to invest heavily in renewable energy sources to transition to a broader energy mix. This energy transition is influenced by the social acceptance of renewable energy sources. In this context, this research paper explores the effectiveness of social acceptance of renewable energy sources and the oil and gas sector’s response to this paradigm. We use secondary data obtained from Frankfurt School UNEP Collaborating Centre for 2010–2019 and survey data on social concern about renewable energy sources published by the University of London-European Commission, Pew Research Centre, and Gallup opinion polls for the same period from the United States and Europe. Excel spreadsheets are used to give graphic and numeric outputs for a time-series descriptive analysis method. The outcome of the analysis shows us the relationship between the public concern about renewable energy and the oil and gas industry’s investment in renewable energy and the environmental performance of the sector. Our analysis shows that public acceptance of renewable energy is always higher in Europe than in the United States, but it has been increasing steadily on both sides of Atlantic, in Europe from 82% in 2015 to 84% in 2019 (though social attention shifted to
other issues in 2017) and in the United States from 58% in 2015 to 70% in 2019. Our study of decades of data and our time series descriptive analysis reveals a significant relationship between the independent variable ‘social concern about renewable energy sources’ and the dependent variable ‘oil and gas sector investment in renewable energy’. The outcome of the analysis shows us the relationship between the public concern about renewable energy and the oil and gas industry’s investment in renewable energy sources, resulting in positive response to the new environmental paradigm.
Our analysis shows that public acceptance of renewable energy is always higher in Europe than in the United States, but it has been increasing steadily on both sides of Atlantic, in Europe from 82% in 2010 to 84% in 2019 (though social attention shifted to other issues in 2017) and in the United States from 58% in 2015 to 70% in 2019. Our study of decades of data and our descriptive analysis reveals a significant relationship between the independent variable ‘social concern about renewable energy sources’ and the dependent variable ‘oil and gas sector investment in renewable energy’.
