Does the Type of Renewable Energy Matter for Economic Growth? An Empirical Investigation using Panel Data from 212 Countries between 1965 and 2021

Abstract

This paper analyzes the effects of different sources of renewable energy on economic growth utilizing a panel of 212 countries between 1965-2021. The focus lies on five renewable energy sources: solar, wind, hydraulic, biofuel, and geothermal. Findings reveal that geothermal and hydraulic energies impact positively economic growth, while solar, wind, and biofuel energies negatively impact it. Consequently, the study suggests that policymakers should prioritize the development and investment in hydraulic and geothermal energy, while reconsidering support for solar, wind, and biofuel sources. The efficiency and cost of each energy type may vary based on factors such as location, technology, and available resources.

Keywords

• Economic growth
• Renewable energy
• Source-wise analysis
• panel econometrics