Energy Transition and the Economy: A Review Article

Abstract

The global energy sector is in a period of transition, during which time it is expected that renewable and low-carbon energy sources, such as wind and solar, will replace traditional fossil fuels, including oil, gas, and coal. The energy transition is happening not only to limit the environmental impact of fossil fuel production and consumption but also to ensure energy security, reliability, access, affordability, and sustainability. The importance of the energy transition has been amplified by recent events, notably the Russian-Ukraine conflict. Economic, financial, and trade sanctions against Russia, and in particular its oil and gas industry, have forced countries to find new suppliers in the short term, but also to investigate new and more sustainable sources to guarantee long-term energy security. Given the importance of energy, it is perhaps not unexpected that there is a considerable body of recent academic literature, particularly over the last 4–5 years, studying what industries, consumers, governments, and markets can do to help bring about a faster energy transition. In this paper, we provide a review of the literature that pertains to the economic aspects of the energy transition. While our initial search of the literature is targeted at uncovering all relevant articles on the subject, we focus most of our discussion on the most influential articles in prominent journals and articles published in this journal—Energies. This review is intended to help identify active topics and potential research gaps and provide future direction, so we hope it will prove useful to the readers and authors interested in this topic.