Mainstreaming renewable energy is key in ensuring sustainable access to clean and affordable energy. An update report on Sustainable Development Goal 7 reveals that countries are advancing towards sustainable energy targets and sets out that over 660 million households lack electricity and forecasts that over 2 billion people will still rely on polluting fuels by 2030 (United Nations, 2023). As such, it is prudent for developing economies to refocus their growth aspirations and energy generation plans to renewable energy sources such as solar, wind and hydropower. One would wonder if moving to renewable energy reduces the growth potential of developing countries, given the huge capital commitments in setting up and maintaining renewable energy plants. Similarly, one may ask, what is the association between fossil fuels usage and growth in developing countries?
That is a very interesting question. The source of energy can have a significant impact on the growth of developing countries, as well as their environmental and social outcomes. According to the web search results, there are different perspectives and evidence on how renewable energy consumption affects economic growth in developing countries.
Some studies suggest that renewable energy consumption can positively impact economic growth in developing countries, as it can help them mitigate climate change, build resilience to volatile prices, and lower energy costs. Renewable energy sources such as solar, wind, hydro, and biomass can also benefit investors, governments, and consumers who need reliable, low-cost electricity. According to frontiersin.org, Morocco has renewable energy projects that comprise two-fifths of its installed energy capacity. India has the fastest-growing rate of renewable electricity growth of any major economy.
Other studies argue that renewable energy consumption does not hinder economic growth in developing and developed countries. They claim that consuming renewable energy (threshold level) has little significance on economic growth for developed countries. They also point out that renewable energy sources may face challenges such as high upfront costs, lack of infrastructure, policy uncertainty, or market distortions that may limit their competitiveness and scalability.
Therefore, the answer to your question may depend on various factors such as the type and level of renewable energy consumption, the characteristics and preferences of the consumers and producers, the availability and affordability of alternative sources of energy, the quality and stability of the power grid system, the regulatory and institutional framework, and the environmental and social impacts. There is no simple or definitive answer to this question, but rather a need for more research and analysis to understand the complex relationship between renewable energy consumption and economic growth in developing countries.
Jorge Morales Pedraza Thank you for the enriching response. I am inspired to take it up and do a research paper on the subject using a sample of Landlocked Developing Countries (LLDCs), as they have limited access to water. Countries with access to the sea have an option of setting up seawater pumped hydro storage electricity. Similarly, coastal areas are ideal for setting up wind power than inland locations. As such, l argue that it will be research worthy to use a sample of landlocked countries.
The source of energy matter can help the growth of developing countrie
In my opinion, in the modern world, the power of any country is determined, firstly, by scientific potential, and secondly, by the availability of energy resources
Takhir Majidov How can one capture the scientific potential of a country, what are the available proxies for modelling purposes? Osama Bahnas Anil Dube Jorge Morales Pedraza David Damiyano
Malvin Mpofu it is imperative for LLC in developing states. The use of nuclear in modern days cant be over emphasised. Follow what is happening with the only nuclear plant in Africa, the Cape Town, SA.
Basically the lower the capital cost of the energy plant and the cheaper the energy source the better. A difficult conundrum for everyone. Gimmicks and propaganda abound in this field. China and India seem to have got the balance right.
state monopoly that controls technology and foreign policy issues...related to regulations
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