Sustainable economic development in OECD countries: Does energy security matter?

Abstract

Given its versatility, energy security's importance to economic growth cannot be overstated. Existing empirical research has not, however, taken into account the significance of energy security in achieving sustainable economic and financial development. The objective of this study is to provide an empirical response to the question, “How can we exploit energy potentials without compromising the sustainable development agenda?”. Our research indicates that energy security enhances economic and financial sustainability. However, the influence varies between quantiles. Initially, energy security inhibited sustainable economic development; this may have been due to excessive reliance on fossil fuel as a source of energy generation; however, the energy transition to renewable energy mitigated this negative impact, thereby fostering sustainable economic development. Likewise, energy security promotes long‐term sustainable financial development. Energy security is the heart of sustainable economic and financial development hence, the need for diversification of energy sources by promoting the adoption of renewable energy technologies became necessary. Encourage investments in solar, wind, hydro, geothermal, and other renewable sources to reduce dependence on fossil fuels and mitigate environmental impacts.

Sustainable Energy Development and Sustainable Economic Development in EU Countries

“…The sustainable development of the entire energy sector plays a vital role in implementing the concept of sustainable development. Many researchers [15][16][17][18][19] point out that this will require rethinking the entire world economy, and most importantly, the energy economy in particular. A sustainable energy sector is a much-needed direction of development, with the global economy being threatened by energy deficits, excessive cash transfers to raw-material economies, environmental devastation, climate change, and biodiversity loss.…”