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Nudging Sustainable Development: Reviewing Energy Transition and Economic Development

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  • Xu Tian

    (Science and Technology Finance Key Laboratory of Hebei Province, Hebei Finance University, Baoding 071051, China
    Faculty of Management, Hebei Finance University, Baoding 071051, China
    Faculty of Management, Universiti Teknologi Malaysia, Johor Baru 81310, Malaysia)

  • Umar H. A. Kohar

    (Faculty of Management, Universiti Teknologi Malaysia, Johor Baru 81310, Malaysia)

  • Saleh F. A. Khatib

    (Faculty of Management, Universiti Teknologi Malaysia, Johor Baru 81310, Malaysia
    Faculty of Business, Sohar University, Sohar 311, Oman)

  • Yan Wang

    (Faculty of Management, Hebei Finance University, Baoding 071051, China
    Faculty of Business and Communications, INTI International University, Nilai 71800, Malaysia)

Abstract

Recently, as more countries and regions have embarked on the path of energy transition, the speed and manner of economic development have been influenced in varying degrees. However, the relationship between energy transition and economic development remains unclear, as research conclusions are inconsistent. The aim of this study is to systematically examine the relationship between energy transition and economic development using the literature review approach. This study selected 102 studies from Scopus that explicitly address energy transition and economic development as our final sample for this investigation, aiming to clarify the current research status on factors, barriers, and pathways of energy transition, and discuss related theories about energy transition. The results indicate a significant increase in research volume on this topic over the past four years, with nearly half of the studies focusing on cross-regional countries or economic entities. The sampled literature reveals various relationships between economic development and energy transition, including one-way promotion, one-way inhibition, bidirectional causality, and ineffectiveness. Factors influencing energy transition include technology, financial support, environmental governance, human capital, taxation, rents, and foreign direct investment (FDI). The main obstacles to energy transition lie in the scarcity of environmental resources, path dependence, and uneven development. Based on these research findings, this study discusses prospects and potential directions for future studies.

Suggested Citation

  • Xu Tian & Umar H. A. Kohar & Saleh F. A. Khatib & Yan Wang, 2024. "Nudging Sustainable Development: Reviewing Energy Transition and Economic Development," Sustainability, MDPI, vol. 16(8), pages 1-29, April.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:8:p:3101-:d:1372261
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    References listed on IDEAS

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