Does renewable energy promote green economic growth in emerging market economies?
International Journal of Energy Sector Management
ISSN: 1750-6220
Article publication date: 12 February 2024
Abstract
Purpose
While sustainable growth extends the use of resources, it is crucial to explore green growth (GG) that ensures growth sustainability through the adoption of renewable energy. Thus, this study is motivated to investigate the influence of renewable energy on GG in 19 emerging countries spanning a decade and a half (2000–2020). This study aims to provide a quantitative examination of how renewable energy contributes to sustainable economic growth.
Design/methodology/approach
This study uses advanced dynamic common correlated effect techniques to assess the long-term effectiveness of renewable energy on GG. Additionally, it uses Dumitrescu and Hurlin causality tests to identify synchronicity between the respective variables.
Findings
The findings of this study reveal that the adoption and utilisation of renewable energy effectively promote GG in emerging economies. However, in contrast, the significantly greater negative influence of trade openness on GG compared to renewable energy highlights the inadequacy and limited impact of cleaner energy alone.
Originality/value
To the best of the authors’ knowledge, existing literature predominantly focuses on investigating the relationship between renewable energy and economic growth, with only a limited number of studies exploring the impact on GG. To the best of the authors’ knowledge, this study would be the first to analyse this relationship in these emerging countries. Furthermore, previous estimation frameworks used in prior studies often overlook the crucial factor of cross-sectional dependence (CSD) among countries. Therefore, this study addresses this issue using a contemporary econometric approach that deals not only with CSD but other biases, like endogeneity, autocorrelation, small sample bias, etc.
Keywords
Acknowledgements
Statements and declarations.
Funding: This research received no specific grant from the public, commercial or not-for-profit funding agencies.
Competing interests: The authors have no relevant financial or non-financial interests to disclose.
Ethical approval: NA.
Authors contributions: Megha Chhabra: Writing – Original Draft, Conceptualisation, Methodology, Data curation, Software, Visualisation, Investigation. Mansi Agarwal: Data Collection, Writing – Literature. Arun Kumar Giri: Supervision, Writing – Reviewing, Conceptualisation.
Data availability: All the data sets for this paper are available at online open sources, as mentioned in the paper.
Consent to publish and consent to participate: The authors confirm that the manuscript has been read and approved for submission by all the named authors.
Since submission of this article, the following author has updated their affiliation: Megha Chhabrais also Associated with Dr. B. R. Ambedkar School of Economics University, Bengaluru, India.
Citation
Chhabra, M., Agarwal, M. and Giri, A.K. (2024), "Does renewable energy promote green economic growth in emerging market economies?", International Journal of Energy Sector Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJESM-08-2023-0023
Publisher
:Emerald Publishing Limited
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