Economic Growth and the Transition to Renewable Energy

Stephen Kosempel^*
*Correspondence: Stephen Kosempel, Department of Economics and Finance, University of Guelph, Guelph, ON N1G 2W1, Canada, Email:

Keywords

Energy transition• Conventional energy • Environment autocorrelation • Stock market

Introduction

Renewable energy is an important driver of economic growth, creating jobs and stimulating investment. According to the International Renewable Energy Agency (IRENA), the renewable energy sector employed 11 million people worldwide in 2018, a 7% increase from the previous year. In addition, renewable energy investment reached a record high of $288.9 billion in 2018, a 9% increase from the previous year. The growth of the renewable energy sector is also driving innovation and the development of new technologies. The shift towards renewable energy is creating new industries and new markets, which are leading to new job opportunities and economic growth. For example, the solar industry has created more than 3 million jobs globally, while wind energy has created more than 1 million jobs.

Literature Review

Renewable energy is also driving economic growth in developing countries, where access to energy is limited. In many parts of the world, access to energy is a major barrier to economic growth, as it limits the ability of businesses to operate and people to access education and healthcare. Renewable energy offers a sustainable and affordable solution to this problem, enabling developing countries to power their economies and improve living standards.Transitioning to renewable energy is essential for economic growth and sustainability. Fossil fuels are a finite resource, and their use is contributing to climate change, air pollution, and other environmental problems. Renewable energy, on the other hand, is abundant, clean, and sustainable, and can be used to power economies without damaging the environment [1-3].

Discussion

The transition to renewable energy is also becoming increasingly costeffective. In many parts of the world, renewable energy is now cheaper than fossil fuels, making it an attractive option for businesses and governments. According to IRENA, the cost of renewable energy has fallen by 80% since 2010, and is expected to continue to fall in the coming years. However, transitioning to renewable energy is not without its challenges. One of the biggest challenges is the need for infrastructure investment, as renewable energy requires new infrastructure to be built to support it. This includes building new power grids, energy storage systems, and transmission lines. Governments and businesses need to invest in this infrastructure to enable the transition to renewable energy [4-6].

Conclusion

Another challenge is the need for political will and public support. Many governments are still heavily reliant on fossil fuels for energy, and may be resistant to the transition to renewable energy. Public support for renewable energy is essential to create the political pressure needed to drive the transition. Benefits of the Transition to Renewable Energy: The transition to renewable energy offers a range of benefits for both developed and developing countries. These benefits include: Reduced greenhouse gas emissions: The transition to renewable energy can help to reduce greenhouse gas emissions, which contribute to climate change. This can help to mitigate the impacts of climate change, such as rising sea levels, increased frequency of extreme weather events, and food insecurity.

Acknowledgement

None.

Conflict of Interest

There are no conflicts of interest by author.

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