THE ROLE OF RENEWABLE AND NONRENEWABLE ENERGY IN ECONOMIC DEVELOPMENT AND ENVIRONMENTAL DEGRADATION: EVIDENCE FROM G20 COUNTRIES

Abstract

G20 countries are rapidly growing economies that face severe environmental problems due to their heavy dependence on energy consumption. Therefore, this study investigates the influence of renewable and non-renewable energy consumption on economic growth and environmental degradation in G20 nations. For this study, we scrutinized the panel data of G20 countries from 2010 to 2023. Based on PSCE and FGLS estimators, the study findings reveal that renewable energy consumption is significantly associated with economic growth and negatively associated with environmental degradation. Additionally, non-renewable energy consumption significantly impacts both economic growth and environmental degradation. These findings reveal that renewable energy consumption contributes to an eco-friendly environment, and non-renewable energy consumption contributes to environmental degradation. Hence, we encourage policymakers to promote investment in green energy projects to deal with environmental issues.