Renewable energy and economic growth are among the central issues in the two-prongeddisciplines of economics and sustainability. This study explores the impact of renewable energygeneration on economic growth. Utilizing the theoretical framework of Energy Growth Nexus,the research employs a neo-classical production function in several panel data econometricmodels. Sixty nations across the globe are categorized into high-income countries and lowincome countries equally by the World Bank´s income-classifications calculated using theWorld Bank Atlas method. Renewable energy and non-renewable energy generation along withcomponents of production functions such as labor force and investments are examined for theperiod 2000-2021 to identify their impact on GDP. All the variables explored in the study arenormalized by population to account for population differences across countries. Our findingsrobustly support the growth hypothesis, that renewable energy acts as a catalyst to economicdevelopment. The empirical results indicate that there is an association between the renewableenergy and GDP per capita regardless of the nation´s income levels. Robustness checks withdata from a decade preceding the initial analysis are also conducted to ensure the initial findingsare consistent and not an anomaly. The empirical findings from the study offers insights togovernments, energy planners, policymakers, international agencies, and associated bodies toconsider decisions regarding renewable energy transitions. Investments into renewable energyinfrastructure not only enhances the sustainability levels of planet earth but conjointlystimulates economic growth across the globe.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:hj-64586 |
| Date | January 2024 |
| Creators | Havskog, Karin, Binsaj, Aadil |
| Publisher | Jönköping University, IHH, Nationalekonomi |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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