IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i3p2104-d1044163.html
   My bibliography  Save this article

The Impact of Renewable Energy Sources on the Sustainable Development of the Economy and Greenhouse Gas Emissions

Author

Listed:
  • Oriza Candra

    (Department Teknik Elektro, Universitas Negeri Padang, Padang 20506, Indonesia)

  • Abdeljelil Chammam

    (College of Engineering, Department of Electrical Engineering, Prince Sattam Bin Abdulaziz University, Alkharj 11942, Saudi Arabia)

  • José Ricardo Nuñez Alvarez

    (Department of Energy, Universidad de la Costa, Barranquilla 080002, Colombia)

  • Iskandar Muda

    (Department of Doctoral Program, Faculty Economic and Business, Universitas Sumatera Utara, Medan 20222, Indonesia)

  • Hikmet Ş. Aybar

    (Department of Mechanical Engineering, Eastern Mediterranean University, TRNC, Via Mersin 10, Famagusta 99628, Turkey
    Department of Medical Research, China Medical University Hospital, China Medical University, Taichung 404, Taiwan)

Abstract

Growing population and limited energy resources have impacted energy consumption. Limited fossil fuel resources and increased pollution threaten national and human societies. These elements emphasize energy sources. Renewable energy use affects growth. All new energy sources, including renewables, are crucial for global economic growth. Economic and environmental issues have led to new approaches in international environmental law, including the green economy. This study employs structural vector auto-regression (SVAR) to compare the effects and outcomes of increasing the use of renewable energy in the context of economic growth and greenhouse gas emissions in middle income countries (MICs) and high income countries (HICs). The results show that these indicators demonstrate that the production of energy from renewable sources has positive short-term and long-term economic effects with varying contributions. However, renewable energies have a greater impact on the green economy in selected MICs than in selected HICs. Therefore, the promotion of macroeconomic indicators is viewed as one of the reasons for the development of policies to increase energy production from renewable sources in selected countries.

Suggested Citation

  • Oriza Candra & Abdeljelil Chammam & José Ricardo Nuñez Alvarez & Iskandar Muda & Hikmet Ş. Aybar, 2023. "The Impact of Renewable Energy Sources on the Sustainable Development of the Economy and Greenhouse Gas Emissions," Sustainability, MDPI, vol. 15(3), pages 1-11, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:3:p:2104-:d:1044163
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/3/2104/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/3/2104/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Abbas Afshar & Elham Soleimanian & Hossein Akbari Variani & Masoud Vahabzadeh & Amir Molajou, 2022. "The conceptual framework to determine interrelations and interactions for holistic Water, Energy, and Food Nexus," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(8), pages 10119-10140, August.
    2. Markaki, M. & Belegri-Roboli, A. & Michaelides, P. & Mirasgedis, S. & Lalas, D.P., 2013. "The impact of clean energy investments on the Greek economy: An input–output analysis (2010–2020)," Energy Policy, Elsevier, vol. 57(C), pages 263-275.
    3. Wang, Richard & Hsu, Shu-Chien & Zheng, Saina & Chen, Jieh-Haur & Li, Xuran Ivan, 2020. "Renewable energy microgrids: Economic evaluation and decision making for government policies to contribute to affordable and clean energy," Applied Energy, Elsevier, vol. 274(C).
    4. Mohsen Sharifpur & Mohammad Hossein Ahmadi & Jaroon Rungamornrat & Fatimah Malek Mohsen, 2022. "Thermal Management of Solar Photovoltaic Cell by Using Single Walled Carbon Nanotube (SWCNT)/Water: Numerical Simulation and Sensitivity Analysis," Sustainability, MDPI, vol. 14(18), pages 1-19, September.
    5. Stephan B. Bruns & David I. Stern, 2019. "Lag length selection and p-hacking in Granger causality testing: prevalence and performance of meta-regression models," Empirical Economics, Springer, vol. 56(3), pages 797-830, March.
    6. Smirnova, Elena & Kot, Sebastian & Kolpak, Eugeny & Shestak, Viktor, 2021. "Governmental support and renewable energy production: A cross-country review," Energy, Elsevier, vol. 230(C).
    7. Abolfazl Shahabadi & Hanieh Samari & Morteza Nemati, 2017. "The Factors Affecting Environmental Performance Index (EPI) in Selected OPEC Countries," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 21(3), pages 457-467, Summer.
    8. Luciano Lopez & Sylvain Weber, 2017. "Testing for Granger causality in panel data," Stata Journal, StataCorp LP, vol. 17(4), pages 972-984, December.
    9. Colombo, Emilio & Mercorio, Fabio & Mezzanzanica, Mario, 2019. "AI meets labor market: Exploring the link between automation and skills," Information Economics and Policy, Elsevier, vol. 47(C), pages 27-37.
    10. Pao, Hsiao-Tien & Li, Yi-Ying & Hsin-Chia Fu,, 2014. "Clean energy, non-clean energy, and economic growth in the MIST countries," Energy Policy, Elsevier, vol. 67(C), pages 932-942.
    11. Wan Syakirah Wan Abdullah & Miszaina Osman & Mohd Zainal Abidin Ab Kadir & Renuga Verayiah, 2019. "The Potential and Status of Renewable Energy Development in Malaysia," Energies, MDPI, vol. 12(12), pages 1-16, June.
    12. Potrč, Sanja & Čuček, Lidija & Martin, Mariano & Kravanja, Zdravko, 2021. "Sustainable renewable energy supply networks optimization – The gradual transition to a renewable energy system within the European Union by 2050," Renewable and Sustainable Energy Reviews, Elsevier, vol. 146(C).
    13. William Philip Wall & Bilal Khalid & Mariusz Urbański & Michal Kot, 2021. "Factors Influencing Consumer’s Adoption of Renewable Energy," Energies, MDPI, vol. 14(17), pages 1-19, August.
    14. Wang, Qiang & Wang, Lili, 2020. "Renewable energy consumption and economic growth in OECD countries: A nonlinear panel data analysis," Energy, Elsevier, vol. 207(C).
    15. Belaïd, Fateh & Zrelli, Maha Harbaoui, 2019. "Renewable and non-renewable electricity consumption, environmental degradation and economic development: Evidence from Mediterranean countries," Energy Policy, Elsevier, vol. 133(C).
    16. Younes Zahraoui & Mohammed Reyasudin Basir Khan & Ibrahim AlHamrouni & Saad Mekhilef & Mahrous Ahmed, 2021. "Current Status, Scenario, and Prospective of Renewable Energy in Algeria: A Review," Energies, MDPI, vol. 14(9), pages 1-28, April.
    17. Amir Molajou & Parsa Pouladi & Abbas Afshar, 2021. "Incorporating Social System into Water-Food-Energy Nexus," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 35(13), pages 4561-4580, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tang, Ziran & Liu, Yuqing & Zhang, Leilei & Gu, Huimin & Liao, Yuxuan, 2023. "Natural resources, cleaner electricity production and economic performance," Resources Policy, Elsevier, vol. 86(PB).
    2. Mohammad Iqbal Irfany & Annisa Dwi Utami & Deni Lubis & Fiona Ramadhini & Lalacitra Fitri Suwari & Nisrina Rafelia Maula & Fitriyatustany Fitriyatustany & Daffa Aqomal Haq, 2024. "Islamic Finance and Environmental Sustainability: Empirical Insight from OIC Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 14(6), pages 707-715, November.
    3. Busra Agan & Mehmet Balcilar, 2023. "Unraveling the Green Growth Matrix: Exploring the Impact of Green Technology, Climate Change Adaptation, and Macroeconomic Factors on Sustainable Development," Sustainability, MDPI, vol. 15(11), pages 1-20, May.
    4. Wei Wang & Leonid Melnyk & Oleksandra Kubatko & Bohdan Kovalov & Luc Hens, 2023. "Economic and Technological Efficiency of Renewable Energy Technologies Implementation," Sustainability, MDPI, vol. 15(11), pages 1-19, May.
    5. Ahmad, Ejaz & Khan, Dilawar & Anser, Muhammad Khalid & Nassani, Abdelmohsen A. & Hassan, Syeda Anam & Zaman, Khalid, 2024. "The influence of grid connectivity, electricity pricing, policy-driven power incentives, and carbon emissions on renewable energy adoption: Exploring key factors," Renewable Energy, Elsevier, vol. 232(C).
    6. Shoeib Faraji Abdolmaleki & Danial Esfandiary Abdolmaleki & Pastora M. Bello Bugallo, 2023. "Finding Sustainable Countries in Renewable Energy Sector: A Case Study for an EU Energy System," Sustainability, MDPI, vol. 15(13), pages 1-22, June.
    7. Nadia Yusuf & Mostafa F. Fawzy, 2023. "From Gym to Grid: Evaluating the Impact of COVID-19 on Saudi Gym-Goers’ Willingness to Utilize Human Kinetic Energy for Sustainable Energy Generation," Sustainability, MDPI, vol. 15(13), pages 1-19, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vadim V. Ponkratov & Alexey S. Kuznetsov & Iskandar Muda & Miftahul Jannah Nasution & Mohammed Al-Bahrani & Hikmet Ş. Aybar, 2022. "Investigating the Index of Sustainable Development and Reduction in Greenhouse Gases of Renewable Energies," Sustainability, MDPI, vol. 14(22), pages 1-13, November.
    2. Kamali Saraji, Mahyar & Aliasgari, Elahe & Streimikiene, Dalia, 2023. "Assessment of the challenges to renewable energy technologies adoption in rural areas: A Fermatean CRITIC-VIKOR approach," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    3. Mohammed H. Alshareef & Ayman F. Alghanmi, 2024. "Optimizing Maritime Energy Efficiency: A Machine Learning Approach Using Deep Reinforcement Learning for EEXI and CII Compliance," Sustainability, MDPI, vol. 16(23), pages 1-28, November.
    4. Michaela Makešová & Michaela Valentová, 2021. "The Concept of Multiple Impacts of Renewable Energy Sources: A Critical Review," Energies, MDPI, vol. 14(11), pages 1-21, May.
    5. Wu, Hong, 2023. "Evaluating the role of renewable energy investment resources and green finance on the economic performance: Evidence from OECD economies," Resources Policy, Elsevier, vol. 80(C).
    6. BELAÏD, Fateh & Elsayed, Ahmed H. & Omri, Anis, 2021. "Key drivers of renewable energy deployment in the MENA Region: Empirical evidence using panel quantile regression," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 225-238.
    7. Wang, Juan & Li, Ziming & Wu, Tong & Wu, Siyu & Yin, Tingwei, 2022. "The decoupling analysis of CO2 emissions from power generation in Chinese provincial power sector," Energy, Elsevier, vol. 255(C).
    8. Gao, Anna & Sun, Mei & Wen, Weixin, 2024. "Uncovering the spillover effects between the new energy industry and eleven economic sectors in China: Evidence based on stock data," Energy, Elsevier, vol. 301(C).
    9. Panait, Mirela & Apostu, Simona Andreea & Vasile, Valentina & Vasile, Razvan, 2022. "Is energy efficiency a robust driver for the new normal development model? A Granger causality analysis," Energy Policy, Elsevier, vol. 169(C).
    10. Chen, Chaoyi & Pinar, Mehmet & Stengos, Thanasis, 2020. "Renewable energy consumption and economic growth nexus: Evidence from a threshold model," Energy Policy, Elsevier, vol. 139(C).
    11. Wongchai Anupong & Muhsin Jaber Jweeg & Sameer Alani & Ibrahim H. Al-Kharsan & Aníbal Alviz-Meza & Yulineth Cárdenas-Escrocia, 2023. "Comparison of Wavelet Artificial Neural Network, Wavelet Support Vector Machine, and Adaptive Neuro-Fuzzy Inference System Methods in Estimating Total Solar Radiation in Iraq," Energies, MDPI, vol. 16(2), pages 1-14, January.
    12. Ching-Chi Hsu, 2024. "Impact of energy resources on sustainable economic development: Evidence from the Chinese economy," Energy & Environment, , vol. 35(6), pages 2865-2887, September.
    13. Avazkhodjaev S. Shakhabiddinovich & Noor Azuddin bin Yakob & Lau Wee Yeap, 2022. "Asymmetric Effect of Renewable Energy Generation and Clean Energy on Green Economy Stock Price: ANonlinear ARDL Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 407-415.
    14. Namahoro, Jean Pierre & Wu, Qiaosheng & Xiao, Haijun & Zhou, Na, 2021. "The asymmetric nexus of renewable energy consumption and economic growth: New evidence from Rwanda," Renewable Energy, Elsevier, vol. 174(C), pages 336-346.
    15. Amina Tahri & Mohsine Bouya & Mokhtar Ghazouani & Ouafae Achak & Tarik Chafik & Khalid El Azdi & Sanae Boughanbour, 2022. "Impact of Solar Energy Integration on the Rheological and Chemical Properties of Bitumen," Energies, MDPI, vol. 16(1), pages 1-28, December.
    16. Shafini M. Shafie & A. H. Nu’man, 2024. "Energy Storage Integration for Renewable Energy Supply in Malaysia: A Review," International Journal of Energy Economics and Policy, Econjournals, vol. 14(5), pages 242-250, September.
    17. Grant Allan & Kevin Connolly & Peter McGregor & Andrew G Ross, 2019. "Economic activity supported by offshore wind: a hypothetical extraction study," Working Papers 1911, University of Strathclyde Business School, Department of Economics.
    18. H. Qi & C. K. Woo & K. H. Cao & J. Zarnikau & R. Li, 2024. "Price responsiveness of solar and wind capacity demands," Post-Print hal-04597188, HAL.
    19. Østergaard, P.A. & Lund, H. & Thellufsen, J.Z. & Sorknæs, P. & Mathiesen, B.V., 2022. "Review and validation of EnergyPLAN," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    20. Christopher Hartwell, 2022. "Institutions and trade‐related inequality," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 3246-3264, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:3:p:2104-:d:1044163. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.