Renewable, Non-renewable Energy Consumption and Economic Performance in Developed and Developing Countries

Jaganath Behera

World Economics, 2026, vol. 27, issue 2, 41-62

Abstract: The study examines the impact of renewable energy consumption, non-renewable energy consumption, and other factors on economic growth across 29 developed and developing countries, using annual data from 1990 to 2022 sourced from the IEA and EIA. Advanced panel econometric techniques were applied, including tests for cross-sectional dependence and the Pesaran Cross-sectional Augmented Dickey-Fuller (PCADF) unit root test. The analysis primarily relies on the Panel ARDL (PMG, MG, and DFE estimators) model. Carbon emissions have a negative and statistically significant impact on economic growth. In contrast, non-renewable energy consumption, renewable energy consumption, and capital stock (gross fixed capital formation) all exert a positive and statistically significant impact on economic growth at the 1% significance level. The coefficient of convergence (speed of adjustment) is negative and significant across all estimators, confirming the model's validity and absence of omitted variable bias. Variables exhibit mixed stationarity (I(0) and I(1)), with cross-sectional dependence present. Carbon emissions, capital stock, and renewable energy consumption demonstrate short-run causality with economic growth.

Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:wej:wldecn:974

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