Changing Energy Paradigm and its role in Economic Growth in Global South

Abstract

The paper highlights the changes in the energy paradigm in the developing nations of Global South, comparing the prominent countries within the regions in terms of energy transition towards renewable and sustainable energy sources. The study has primarily two-fold objectives, first to evaluate the energy security of Global South on the basis of 4 A definition of energy security. Secondly, to investigate the interdependence of economic growth and consumption of renewable energy using the granger causality test which reinforces the case for energy transition to renewable sources of energy in these developing nations. The results reveal that High income countries are much worse off in terms of deterioration in status of energy security as compared to other categories which improve in status of energy security in this region. The paper highlights the significant role of acceptability dimension of 4A definition of energy security implying policy implications of investing more on renewable energy and carbon reducing technologies. The Granger causality test fortifies existence of no relationship between economic growth and renewable energy consumption in case of high income, upper middle, low income countries but in case of low middle income countries renewable energy consumption granger causes economic growth. Energy transition towards renewable energy sources which involves time lag in realizing socio – economic benefits is strongly recommended by the study.