The Economic Impacts of Renewable Energy Adoption: A Comparative Analysis of Developed and Developing Nations

Abstract

This article discusses the economic impact of renewable energy adoption through a comparative analysis between developed and developing countries. Using qualitative methods based on literature studies and library research, this study explores how investment in renewable energy affects economic growth, job creation, and economic environmental stability in both types of countries. The findings show that developed countries tend to have stronger infrastructure and greater funding to support the energy transition, so they can see the economic benefits of renewable energy investment more quickly, including in the technology and innovation sectors. On the other hand, although developing countries face capital and infrastructure constraints, the adoption of renewable energy has the potential to increase energy security, reduce dependence on imported energy, and create new economic opportunities, especially in rural areas. This analysis highlights the importance of international policy and investment support to help developing countries overcome challenges in the energy transition. This article is expected to provide insights to policymakers on the importance of an approach tailored to each country's conditions to encourage the adoption of renewable energy that is effective and positively impacts the economy.