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How is energy transition shaping a path to common prosperity and sustainable economic growth?

Author

Listed:
  • Yiping Zheng

    (Shanghai Jiao Tong University
    Tianjin University of Commerce)

  • Qinyu Xu

    (Tianjin University of Commerce)

  • Qianrong Wang

    (Tianjin University of Commerce)

Abstract

This study assesses the impact of the transition to renewable energy and improved societal well-being on environmentally sustainable economies, concentrating on 20 major CO2-emitting countries from 2000 to 2020. Employing the pooled mean group (PMG) method, the findings indicate that a 1% increase in fossil fuel consumption results in a significant short-term decline of approximately 0.22% and a more substantial long-term decrease of 0.43% in green growth. This decline is attributed to the exacerbation of environmental degradation through notable carbon emissions. Interestingly, a 1% increase in the Human Development Index (HDI) is associated with heightened green growth, indicating an increased awareness of environmental issues. Conversely, a 1% reduction in population has a negative impact on green growth, underscoring the importance of balancing population dynamics with sustainable development. Furthermore, diminished internet penetration, rural electrification, and poverty exert adverse effects on the green growth index. The implementation of practical policies for major CO2 emitters is crucial, encompassing initiatives such as digitalizing the green finance market, promoting ICT diffusion, advancing regional green power generation, adopting eco-friendly practices in petroleum industries, and liberalizing green utilities trade. These measures are essential for fostering green growth, enhancing social prosperity, and mitigating environmental degradation.

Suggested Citation

  • Yiping Zheng & Qinyu Xu & Qianrong Wang, 2024. "How is energy transition shaping a path to common prosperity and sustainable economic growth?," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-16, April.
    • Handle: RePEc:kap:ecopln:v:57:y:2024:i:2:d:10.1007_s10644-024-09624-x
    DOI: 10.1007/s10644-024-09624-x
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    References listed on IDEAS

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    More about this item

    Keywords

    Energy transition progress; Common prosperity; Green economic growth; Human development index;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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