A Revisit of Energy Consumption Preferences and Economic Growth in Developing Economies

Abstract

Clean and green energy consumption has become a global challenge for all developing countries and international organizations. Not many studies have examined the impact of energy consumption preferences on economic growth particularly in developing counties. Due to the rapid increase in population and the desire for achieving high economic growth, the demand for energy is on the upswing in developing counties. The main objective of this study is to develop an empirical model that measures the impact of energy mix on economic growth in 82 developing countries. PQR and FGLS estimation techniques have been used for examining the impact of energy mix on economic growth for the period 1990-2020 in developing economies of the globe. The results of the study confirm the existence of an inverted U-shaped relationship between the energy mix and economic growth. The study concludes that developing countries should use more renewable energy than fossil fuel energy for achieving rapid economic growth without environmental degradation.