Abstract
This study investigates the moderating role of economic complexity in the relationship between energy transition and economic growth, utilizing panel data from 124 countries spanning 2000–2020 and employing the robust weighted least squares (RWLS) estimation method. Our findings indicate an overall negative impact of energy transition on economic growth. Notably, economic complexity emerges as a positive moderator, alleviating the adverse effects of energy transition. This novel insight challenges existing literature, contributing to a more comprehensive understanding of the interplay between renewable energy adoption, economic growth, and economic complexity. Policymakers should acknowledge the intricate dynamics involved in transitioning to renewable energy sources and consider the role of economic complexity in shaping outcomes.
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