Renewable energy, economic growth and sustainable development: A model development in the light of empirical insights

Abstract

AbstractWe construct a sustainable development model by examining the short‐run relationship, long‐run relationship and causality between renewable energy consumption and economic growth. We consider a sample of 142 countries for 1991–2019 and employ time series analysis. The study noticed the long‐run and short‐run relationship between economic growth and renewable energy consumption in the case of all Countries Groups and regions such as Europe and Central Asia, Middle East and North Africa, Sub‐Saharan Africa and low‐income economies. Overall, we conclude that renewable energy consumption positively influences economic growth, which can motivate countries to achieve sustainable development goals. A nation cannot only focus on economic development when growing environmental and climatic concerns exist. What is essential is the prioritisation of sustainable development goals. The constructed model will help the countries plan, modify and implement national and international sustainable development policies. The results will also be helpful to intergovernmental organisations for channelling countries' efforts towards sustainable development.