The dynamic links among energy transitions, energy consumption, and sustainable economic growth: A novel framework for IEA countries

Irfan Khan, Fujun Hou*, Abdulrasheed Zakari, Vincent Konadu Tawiah

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    214 Citations (Scopus)

    Abstract

    The role of renewable energy in protecting the environment is well established. This study explores the dynamic links among energy transitions, energy consumption, and sustainable economic growth in thirty-eight International Energy Agency (IEA) countries. We apply advanced econometric methodologies for empirical analysis from 1995 to 2015 and find long-run relationships among the variables. However, the effect of energy transitions on economic growth is significant only in the long run, and economic sustainability influences economic growth in both the short run and the long run. Moreover, the energy transition is negatively associated with host countries’ economic growth, while economic sustainability, renewable energy consumption, non-renewable energy consumption, labor, and capital are positively related to that growth. Policymakers in the IEA countries are encouraged to settle carbon costs and taxation, provide continuous support to research and development, commercialize low–CO2–emission technologies, reduce subsidies on non-renewable energy, offer cooperative programs for technology transfers, and generate a green trade policy to procure sustainable development. Study limitations and directions for future research in the area are presented.

    Original languageEnglish
    Article number119935
    JournalEnergy
    Volume222
    DOIs
    Publication statusPublished - 1 May 2021

    Keywords

    • Economic growth
    • Economic sustainability
    • Energy consumptions
    • Energy transitions
    • IEA countries

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    Khan, I., Hou, F., Zakari, A., & Tawiah, V. K. (2021). The dynamic links among energy transitions, energy consumption, and sustainable economic growth: A novel framework for IEA countries. Energy, 222, Article 119935. https://doi.org/10.1016/j.energy.2021.119935