Assessing the Potential of Renewable Energy Production as a Driver of Economic Growth

• Main Author: Vostriakova Viktoriia I.
• Format: Article
• Language: English
• Published: Research Centre of Industrial Problems of Development of NAS of Ukraine 2021-07-01
• Series: Bìznes Inform
• Subjects: gdp; investment potential; consumption; production; renewable energy sources; regression analysis
• Online Access: http://www.business-inform.net/export_pdf/business-inform-2021-7_0-pages-146_152.pdf

The presented article aims to study the relationship between consumption and production of renewable energy and economic growth expressed in GDP per capita of the countries that invest the most in the development of renewable energy (USA, EU, China), and in the global dimension – for comparison with Ukraine and Russia. The World Bank’s secondary data for 1990-2015 and methodology of linear regression modeling were used for the research. An analytical review of the growing global investment potential of renewable energy in terms of general dynamics, sectors and leading countries in the context of investments in renewable energy sources was carried out. The results of correlation-regression analysis demonstrate a high correlation relationship between alternative energy consumption and economic growth of more developed countries with high GDP per capita than countries with lower GDP. The findings are consistent with other publications reviewed in the research. In addition, the increase in both China’s and the world’s GDP in the share of alternative energy production has a positive impact, and the increase in the share of consumption is negative. Whereas at the level of such countries as the USA, the European Union and Ukraine – on the contrary, consumption itself has a positive impact. The development of alternative energy has a negative impact on the economic growth of the Russian Federation in both indicators. According to the results of the carried out study, it can be summarized that countries with both high and low GDP should take all necessary measures to increase consumption and production of renewable energy sources, which provides for the formation of a favorable investment climate for large-scale investments in renewable energy, which, in turn, will lead to an increase in the pace of economic growth in the long term.