Renewable energy and green economic growth nexus: Insights from simulated dynamic ARDL

Abstract

The nexus between renewable energy and green economic growth is multifaceted and promising. By transitioning to renewable energy sources, countries can simultaneously address climate change, promote sustainable development, and stimulate economic growth. The past few decades have seen increasing environmental hazards because of the ecological pressure exerted by humanity. Attaining sustainable development without harming the environment has immense importance in recent strands of literature. Thus, we employ novel dynamic ARDL simulations to explore the significance of the renewable energy and green economic growth nexus in both the short and long run, for large developed countries. Our findings indicate that green economic growth and economic globalization significantly enhance renewable energy consumption, and there is a long-term cointegration among the variables. The study further reveals that emissions are considerable despite the adoption of renewable energy in these highly industrialized countries. By prioritizing the transition to renewable energy, creating green jobs, enhancing energy efficiency, fostering innovation and research, and strengthening international cooperation, G-20 countries can lay the foundation for a sustainable and prosperous future. It is imperative that these policy implications are implemented effectively to address the urgent challenges of climate change and promote green economic growth.