Scholarly record
ECONOMIC IMPLICATIONS OF THE TRANSITION TO RENEWABLE ENERGY IN EMERGING ECONOMIES
Abstract
The global transition toward renewable energy has become one of the most significant economic and environmental transformations of the twenty-first century. Driven by climate change mitigation goals, energy security concerns, technological innovation, and international sustainability commitments, emerging economies are increasingly investing in renewable energy systems such as solar, wind, hydropower, biomass, and geothermal energy. However, the economic implications of this transition are complex, involving structural changes in labor markets, industrial competitiveness, fiscal policy, investment flows, energy affordability, and regional development. For emerging economies, where economic growth, poverty reduction, and infrastructure expansion remain central priorities, balancing green transition objectives with socio-economic stability presents a major policy challenge. This study examines the economic implications of the transition to renewable energy in emerging economies, focusing on both macroeconomic and regional development dimensions. The research investigates how renewable energy adoption influences GDP growth, employment creation, foreign direct investment, industrial modernization, energy prices, trade balances, and fiscal sustainability. Special attention is given to the uneven distribution of benefits and costs across sectors, territories, and social groups, including rural communities, coal-dependent regions, informal labor markets, and low-income households vulnerable to energy poverty. Using an interdisciplinary methodological framework that combines panel data econometric analysis, comparative policy assessment, input-output modeling, and case studies from emerging economies in Eastern Europe, Latin America, Asia, and Africa, the study identifies the main drivers and barriers of renewable energy transition. The analysis also explores the role of institutional quality, governance capacity, technological transfer, international financing, and green industrial policy in shaping successful outcomes. The interaction between renewable energy expansion and Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy), SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation and Infrastructure), and SDG 13 (Climate Action), is also examined.
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References11
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