Researchers Kadir, Deka, Özdeşer and Seraj from Near East University have conducted a collaborative study investigating the relationship between energy efficiency and economic growth, particularly focusing on emerging economies. The research highlights the significance of energy in driving economic progress while also addressing the environmental concerns associated with non-renewable energy sources.
The study utilizes panel data from seven emerging economies spanning the years 1990 to 2019 and employs advanced statistical techniques to analyze the impact of energy efficiency on economic growth. Findings reveal that factors such as labor, capital, renewable energy, energy use, and energy efficiency significantly contribute to gross domestic product (GDP) growth, emphasizing their importance in driving economic development.
Furthermore, the study uncovers a nuanced relationship between non-renewable energy use and GDP growth. While carbon emissions exhibit symmetric effects on GDP, excessive reliance on non-renewable energy is found to hinder economic growth, particularly at higher levels of usage. This underscores the importance of transitioning towards renewable energy sources to promote sustainable economic development and mitigate environmental impacts.
The research provides valuable insights for policymakers seeking to formulate effective strategies for promoting economic growth while addressing environmental concerns in emerging economies. By recommending the adoption of renewable energy sources, investment in labor force development, and implementation of energy efficiency initiatives, the study offers practical recommendations to enhance sustainable economic development.
Looking forward, the study suggests the need for further research to broaden the analysis beyond the selected economies and explore the applicability of the findings in diverse global contexts. Nevertheless, the rigorous methodology and compelling results of the study contribute significantly to the understanding of the relationship between energy efficiency and economic growth, emphasizing the importance of prioritizing sustainable energy solutions for future prosperity.
More Information:
https://link.springer.com/article/10.1007/s12053-023-10130-8
