ASSESSING THE IMPACTS OF RENEWABLE AND NON RENEWABLE ENERGY CONSUMPTION ON ECONOMIC GROWTH: A GLOBAL ANALYSIS

Abstract

Despite the well-documented environmental disadvantages of non-renewable energy (NRE), it is still used and consumed in most countries at a high rate because of its positive relation with the economy. Therefore, it is crucial to explore the economic advantages of renewable energy (RE) to reduce reliance on non-renewable sources. This research investigates the impact of both renewable and non-renewable energy consumption on economic growth (EG) through a detailed global analysis by employing a panel dataset covering 140 countries from 2001 to 2022. This study utilizes sophisticated econometric methods, including the cross-sectional dependency test, slope homogeneity test, and panel co-integration test, to ensure reliable and accurate results. The analysis reveals that renewable energy consumption (REC) and non renewable energy consumption (NREC) positively impact the EG; however, given the environmental degradation associated with NRE, this study advocates for the increased use of RE sources. The study advocates for increased support of community based RE initiatives and recommends policy measures to promote the global adoption of RE. These insights are essential for policymakers seeking to achieve a balance between EG and environmental sustainability (ES).