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From Fossil to Future: The Transformative Role of Renewable Energy in Shaping Economic Landscapes

Author

Listed:
  • Misbah Nosheen

    (Department of Economics, Hazara University Mansehra, Pakistan)

  • Ahsan Akbar

    (Department of Informatics and Quantitative Methods, Faculty of Informatics and Management, University of Hradec Kralove, Hradec Kralove, Czech Republic)

  • Mariam Sohail

    (ESc Clermont Business School, Clermont Ferrand, France)

  • Javed Iqbal

    (School of Economics, Quaid Azam University Islamabad, Pakistan)

  • Martina Hedvicakova

    (Department of Informatics and Quantitative Methods, Faculty of Informatics and Management, University of Hradec Kralove, Hradec Kralove, Czech Republic)

  • Sareer Ahmad

    (School of Economics, Quaid Azam University Islamabad, Pakistan)

  • Syed Arslan Haider

    (Department of Management, Sunway Business School, Sunway University, 47500 Selangor Darul Ehsan, Malaysia)

  • Azeem Gul

    (Department of International Relations, National University of Modern Languages, Pakistan)

Abstract

In recent years, numerous countries have embarked on a transformative journey to reshape their energy portfolios by transitioning from fossil-based resources to renewable sources, significantly impacting economic growth. This study aims to scrutinize the influence of renewable energy consumption (REC) on GDP growth responsiveness in the top 20 renewable energy-consuming countries over the period from 1990 to 2021. To ensure robust panel analysis, the study addresses cross-sectional dependence using the diagnostic test proposed by Pesaran (2004). The long-run perspective reveals that both conventional factors of production, encompassing both renewable and non-renewable energy (Fossil Fuel Energy - FEF) consumption, make positive contributions to GDP growth in the sampled countries. Single-country time series analyses further underscore the positive long-run output elasticities concerning renewable energy in the majority of these nations. These findings highlight the pivotal role of renewable energy as a key determinant of sustained GDP growth, indicating that these countries are on a trajectory of sustainable development. The study's implications extend to policy considerations, urging collaborative efforts among governments, international organizations, and energy planners. There is a pressing need for the implementation of strategic renewable energy initiatives across nations. Governments are encouraged to adopt incentive-based policies to optimize the harnessing of renewable energy resources, fostering not only economic growth but also contributing to the global pursuit of sustainable and environmentally conscious practices.

Suggested Citation

  • Misbah Nosheen & Ahsan Akbar & Mariam Sohail & Javed Iqbal & Martina Hedvicakova & Sareer Ahmad & Syed Arslan Haider & Azeem Gul, 2024. "From Fossil to Future: The Transformative Role of Renewable Energy in Shaping Economic Landscapes," International Journal of Energy Economics and Policy, Econjournals, vol. 14(4), pages 606-615, July.
    • Handle: RePEc:eco:journ2:2024-04-56
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    References listed on IDEAS

    as
    1. Ozturk, Ilhan & Acaravci, Ali, 2010. "CO2 emissions, energy consumption and economic growth in Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(9), pages 3220-3225, December.
    2. Altinay, Galip & Karagol, Erdal, 2005. "Electricity consumption and economic growth: Evidence from Turkey," Energy Economics, Elsevier, vol. 27(6), pages 849-856, November.
    3. Ahsan Akbar & Azeem Gul & Mariam Sohail & Martina Hedvicakova & Syed Arslan Haider & Sareer Ahmad & Samra Iqbal, 2024. "Impact of Renewable and Non-Renewable Energy Resources on CO2 Emission: Empirical Evidence from SAARC," International Journal of Energy Economics and Policy, Econjournals, vol. 14(1), pages 141-149, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Fossil-Based Resources; Gross Domestic Product Growth; Renewable Energy; Non-Renewable Energy; Fully Modified Ordinary Least Squares;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • F6 - International Economics - - Economic Impacts of Globalization

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