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The Link between Economic Growth and Sustainable Energy in G7-Countries and E7-Countries: Evidence from a Dynamic Panel Threshold Model

The available literature on sustainable energy use and economic growth nexus yields conflicting conclusions, as the effect can be positive, negative, or insignificant. This research explores the causal link between sustainable energy use and economic growth in G7-countries (Japan, Canada, Germany, Italy, France, United Kingdom, and United States) and E7-countries (Russia, Brazil, Indonesia, China, Mexico, India, and Turkey) countries from 1990 to 2019. We discover that sustainable energy use and economic growth are proportional. Our results show that sustainable energy use positively affects economic growth if E7-countries exceed a specific threshold. It is detrimental to economic growth for the E7 countries' sustainable energy use to fall below a certain threshold. The use of sustainable energy has no significant impact on economic growth, although it does have a positive and noticeable impact in the G7 countries. In order for the countries of the G7 to see positive economic growth as a result of their investment in renewable energy, it is necessary for those nations to surpass a certain threshold in terms of their use of sustainable energy.
- Prince Sultan University Saudi Arabia
- University of Karachi Pakistan
- Prince Sattam Bin Abdulaziz University Saudi Arabia
- Salim Habib University Pakistan
- Salim Habib University Pakistan
Renewable energy, Developing country, Economics, FOS: Political science, Social Sciences, Economic Impact of Environmental Policies and Resources, Energy Consumption, Engineering, Natural resource economics, Economic Growth, Sustainable development, GE1-350, Global Energy Demand, Rebound Effect on Energy Efficiency and Consumption, Political science, Development economics, Energy, Geography, Pollution, Economics, Econometrics and Finance, Archaeology, Physical Sciences, HD9502-9502.5, Economics and Econometrics, China, FOS: Law, E7 countries, Energy industries. Energy policy. Fuel trade, FOS: Economics and business, Indoor Air Pollution in Developing Countries, Econometrics, Embedded system, Order (exchange), Economic growth, Panel data, Renewable Energy, Sustainability and the Environment, Threshold effects, Sustainable energy, G7 countries, Computer science, Environmental sciences, Electrical engineering, Environmental Science, Sustainable growth rate, Nexus (standard), Law, Finance
Renewable energy, Developing country, Economics, FOS: Political science, Social Sciences, Economic Impact of Environmental Policies and Resources, Energy Consumption, Engineering, Natural resource economics, Economic Growth, Sustainable development, GE1-350, Global Energy Demand, Rebound Effect on Energy Efficiency and Consumption, Political science, Development economics, Energy, Geography, Pollution, Economics, Econometrics and Finance, Archaeology, Physical Sciences, HD9502-9502.5, Economics and Econometrics, China, FOS: Law, E7 countries, Energy industries. Energy policy. Fuel trade, FOS: Economics and business, Indoor Air Pollution in Developing Countries, Econometrics, Embedded system, Order (exchange), Economic growth, Panel data, Renewable Energy, Sustainability and the Environment, Threshold effects, Sustainable energy, G7 countries, Computer science, Environmental sciences, Electrical engineering, Environmental Science, Sustainable growth rate, Nexus (standard), Law, Finance
citations This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).5 popularity This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.Top 10% influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).Average impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.Top 10%
