Affiliations 

  • 1 Wenzhou Vocational and Technical College, Wenzhou, Zhejiang, 325000, China
  • 2 Department of Economics and Quantitative Methods, Dr. Hassan Murad School of Management (HSM), University of Management and Technology Lahore, Pakistan
  • 3 Department of Economics and Finance, Sunway Business School, Sunway University, Subang Jaya, Malaysia
  • 4 Department of Economics, Government College University Lahore, Pakistan
  • 5 Department of Economics, Ghazi University, Dera Ghazi Khan, Pakistan
  • 6 Department of Statistics, Faculty of Science, University of Tabuk, Tabuk, Saudi Arabia
Heliyon, 2024 Sep 30;10(18):e37190.
PMID: 39678386 DOI: 10.1016/j.heliyon.2024.e37190

Abstract

This study examines the effects of energy resources in the form of clean and unclean energy on the economic progress of 30 selected developed economies. This study used data from 1990 to 2020 and it employs the CS-ARDL method to obtain results. The results present that both clean and unclean energy significantly stimulate economic progress. The findings further expose that foreign investment resources in the form of inflow are significant factors that accelerate economic progress in developed economies. The results reveal that tourism development, capital accumulation, and exports are significant factors in boosting economic progress in the selected economies. Estimates from Dumitrescu and Hurlin's method for heterogeneous panels confirm the presence of the feedback-effect hypothesis for unclean energy, while the energy-conservation hypothesis holds for clean energy. This study suggests that targeting low-cost clean energy production is crucial for promoting economic growth and protecting the environment through carbon mitigation strategies. There is also a need to develop a policy framework that emphasizes the transformation of industry towards clean energy at a macro level. Furthermore, transitioning from unclean to clean energy may enhance economic progress by improving environmental quality norms in the selected developed economies. Finally, policies for tourism development, export improvement, and increased inflow of FDI should be directed towards fostering clean energy agreements and achieving environment-friendly economic progress in developed economies.

* Title and MeSH Headings from MEDLINE®/PubMed®, a database of the U.S. National Library of Medicine.