Renewable energy transition and regional integration: Energizing the pathway to sustainable development

Abstract

Abstract This study examines the influence of renewable energy transition on sustainable development, with multi-dimensional regional integration as a moderator. Using various regression techniques, a balanced panel dataset was analyzed for 64 countries participating in the Belt and Road Initiative (BRI) and three sub-regions (Asia, Europe, and Middle East-Africa) from 2005 to 2020. The findings reveal a positive relationship between renewable energy transition and sustainable development across the full panel and sub-regions of the BRI. Multi-dimensional regional integration also positively influences sustainable development. The interaction of regional integration with renewable energy transitions positively moderates sustainable development in Asia and Europe but negatively in the Middle East-African economies. Macroeconomic conditions, institutional quality, and population size positively affect sustainable development for the full panel, with mixed effects in sub-regions. Conversely, government consumption negatively impacts sustainable development for both the full and regional panels of the BRI. This study underscores important policy implications for promoting a balanced transition from conventional energy sources to renewables, thereby fostering green economic growth, environmental sustainability, and social inclusion.

Keywords: Renewable energy transition, Sustainable development, Regional integration, Belt and Road Initiative (BRI), Panel data analysis