Economic Growth and Sustainable Transition: Investigating Classical and Novel Factors in Developed Countries
Wei Wang (wangwei1@xaufe.edu.cn),
Kehui Wei,
Oleksandr Kubatko,
Vladyslav Piven,
Yulija Chortok and
Oleksandr Derykolenko
Additional contact information
Wei Wang: Collaborative Innovation Research Center of Western Energy Economy and Regional Development, Xi’an University of Finance and Economics, Xi’an 710100, China
Kehui Wei: Collaborative Innovation Research Center of Western Energy Economy and Regional Development, Xi’an University of Finance and Economics, Xi’an 710100, China
Oleksandr Kubatko: Department of Economics, Entrepreneurship and Business Administration, Sumy State University, 40007 Sumy, Ukraine
Vladyslav Piven: Department of Economics, Entrepreneurship and Business Administration, Sumy State University, 40007 Sumy, Ukraine
Yulija Chortok: Department of Economics, Entrepreneurship and Business Administration, Sumy State University, 40007 Sumy, Ukraine
Oleksandr Derykolenko: Department of Economics, Entrepreneurship and Business Administration, Sumy State University, 40007 Sumy, Ukraine
Sustainability, 2023, vol. 15, issue 16, 1-15
Abstract:
In this study, the factors affecting economic growth in developed countries within the context of their sustainability transition are explored. By analyzing both traditional and novel factors, we aim to expand the scientific knowledge of the drivers behind sustainable economic development. To achieve this purpose, some factors that have demonstrated the potential to positively impact economic growth while simultaneously promoting environmental sustainability are included. Research results demonstrate that a 1% increase in energy consumption is associated with a 0.314% increase in real GDP, indicating a positive relationship between energy usage and economic growth. Additionally, the consumption of renewable energy boosts a positive impact on sustainable economic growth: When it grows by 1%, the real GDP increases by 0.12%. The empirical findings further reveal that scientific progress and economic freedom are significant drivers of economic growth, as a 1% increase in both factors leads to an increase in economic output by 0.349% and 0.323%, respectively. By conducting a comprehensive analysis, we provide valuable insights into the complex interplay between economic growth and sustainability in developed countries. Based on these findings, the study offers specific policy recommendations, which include the diversification of the energy mix, the promotion of education and scientific advancement, and the digitalization of public services.
Keywords: sustainability; economic growth; GDP; factors; drivers; energy; renewable energy; science; economic freedom; Cobb–Douglas production function (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
https://www.mdpi.com/2071-1050/15/16/12346/pdf (application/pdf)
https://www.mdpi.com/2071-1050/15/16/12346/ (text/html)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:15:y:2023:i:16:p:12346-:d:1216817
Access Statistics for this article
Sustainability is currently edited by Ms. Alexandra Wu
More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager (indexing@mdpi.com).