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The dynamic analysis of renewable energy’s contribution to the dimensions of sustainable development and energy security

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Abstract

In sustainable development, energy is critical in human activities and shapes a sustainable future. Thus, it is an unignorable element in human development. This paper analyzes the contributions of renewable energy sources (RES)’s to the economic, environmental, and social dimensions of sustainable development. Moreover, we add energy security as a possible fourth dimension into the analysis. For the sample size, we limit the countries members of the OECD and run generalized methods of moments for the period from 1995 to 2015. This method can produce efficient estimators under the problems of endogeneity, omitted-variable bias, measurement errors, and heteroscedastic residuals. According to the results, RES has a small reducing effect (−.007%) on output in the Cobb-Douglas production function for the economic dimension. We found that RES has a positive contribution to the environmental dimension and abates the level of carbon emission (−.093%). RES also confirms the inverted-U shape of environmental Kuznets curve. In the social dimension, RES improves human development and a 1% increase in RES consumption causes to .0045% increase in human development. In the last contribution, RES has a positive effect on sustainable energy supply security in the context of electricity generation (.032%). Although the effects of RES on the environment, social, and energy security are significant, they are limited. These limitations point to barriers that can be overcome over time. Our conclusions recommend that these effects might flourish with technical developments and political support in the long run. Furthermore, public awareness, rising income level, and economies of scale are also beneficial in this process. As a result, RES might be an excellent source for a sustainable future and development. Especially, RES might have remarkable contributions to the 7th, 11th, 12th, and 13th goals of sustainable development.

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Authors and Affiliations

  1. FEAS, Erciyes University, 38030, Kayseri, Turkey

    Faik Bilgili & Hayriye Hilal Bağlıtaş

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  1. Faik Bilgili
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Contributions

This article is derived from a doctoral dissertation. Prof. Dr. Faik BİLGİLİ is the supervisor and designed the econometrics methodology and dataset. H. Hilal BAĞLITAŞ wrote the paper and made the analysis. Review and editing were performed by the Editing Office of Erciyes University.

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Correspondence to Hayriye Hilal Bağlıtaş.

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Communicated by Responsible Editor: Arshian Sharif.

This article is derived from doctoral dissertation.

Appendix 1 (List of abbreviations)

Appendix 1 (List of abbreviations)

  1. AMG:

    Augmented mean group

  2. AR:

    Auto-regressive

  3. ARDL:

    Auto-regressive distributed lag models

  4. BIOC:

    Biomass consumption

  5. BP:

    British petroleum

  6. BRICS:

    Brazil, Russia, India, China, and the Republic of South Africa

  7. CHP:

    Combined heat and power generation

  8. CPTPP:

    Comprehensive and Progressive Agreement for Trans-Pacific Partnership

  9. CS:

    Conventional sources

  10. DEA:

    Divisia envelope analysis

  11. DOLS:

    Dynamic ordinary least squares

  12. EF:

    Ecological footprint

  13. EG:

    Economic growth

  14. ECOWAS:

    Economic Community of West African States

  15. EKC:

    Environmental Kuznets curve

  16. ES:

    Environmental sustainability

  17. ESI:

    Security Supply Index

  18. EU:

    European Union

  19. FES:

    Fossil energy sources

  20. FE-OLS:

    Fixed effect OLS

  21. FGLS:

    Feasible generalized least squares

  22. FMOLS:

    Full-modified OLS

  23. GDP:

    Gross domestic product

  24. GMM:

    Generalized methods of moments

  25. gWh:

    Gigawatt-hour

  26. IV:

    Instrumental variables

  27. kWh:

    Kilowatt-hour

  28. MENA:

    MENA countries consist of Algeria, Bahrain, Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Syria, Tunisia, United Arab Emirates, and Yemen

  29. MM:

    Methods of moments

  30. OECD:

    Organisation for Economic Co-operation and Development

  31. OLS:

    Ordinary least squares

  32. RCW:

    Renewable combustible and waste consumption

  33. RE:

    Renewable energy

  34. REC:

    Renewable energy consumption

  35. RELC:

    Renewable electricity consumption

  36. RELP:

    Renewable electricity production

  37. RES:

    Renewable energy sources

  38. R&D:

    Research and development

  39. SD:

    Sustainable development

  40. SDG:

    Sustainable development goals

  41. SEC:

    Energy security

  42. SVAR:

    Structural vector autoregressive

  43. TEC:

    Total energy consumption

  44. TEP:

    Total electricty production

  45. UNDP:

    United Nations Development Programme

  46. WB:

    World Bank

  47. WM:

    Weighted matrix

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Bilgili, F., Bağlıtaş, H.H. The dynamic analysis of renewable energy’s contribution to the dimensions of sustainable development and energy security. Environ Sci Pollut Res 29, 75730–75743 (2022). https://doi.org/10.1007/s11356-022-20712-1

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