IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i8p3101-d1372261.html
   My bibliography  Save this article

Nudging Sustainable Development: Reviewing Energy Transition and Economic Development

Author

Listed:
  • Xu Tian

    (Science and Technology Finance Key Laboratory of Hebei Province, Hebei Finance University, Baoding 071051, China
    Faculty of Management, Hebei Finance University, Baoding 071051, China
    Faculty of Management, Universiti Teknologi Malaysia, Johor Baru 81310, Malaysia)

  • Umar H. A. Kohar

    (Faculty of Management, Universiti Teknologi Malaysia, Johor Baru 81310, Malaysia)

  • Saleh F. A. Khatib

    (Faculty of Management, Universiti Teknologi Malaysia, Johor Baru 81310, Malaysia
    Faculty of Business, Sohar University, Sohar 311, Oman)

  • Yan Wang

    (Faculty of Management, Hebei Finance University, Baoding 071051, China
    Faculty of Business and Communications, INTI International University, Nilai 71800, Malaysia)

Abstract

Recently, as more countries and regions have embarked on the path of energy transition, the speed and manner of economic development have been influenced in varying degrees. However, the relationship between energy transition and economic development remains unclear, as research conclusions are inconsistent. The aim of this study is to systematically examine the relationship between energy transition and economic development using the literature review approach. This study selected 102 studies from Scopus that explicitly address energy transition and economic development as our final sample for this investigation, aiming to clarify the current research status on factors, barriers, and pathways of energy transition, and discuss related theories about energy transition. The results indicate a significant increase in research volume on this topic over the past four years, with nearly half of the studies focusing on cross-regional countries or economic entities. The sampled literature reveals various relationships between economic development and energy transition, including one-way promotion, one-way inhibition, bidirectional causality, and ineffectiveness. Factors influencing energy transition include technology, financial support, environmental governance, human capital, taxation, rents, and foreign direct investment (FDI). The main obstacles to energy transition lie in the scarcity of environmental resources, path dependence, and uneven development. Based on these research findings, this study discusses prospects and potential directions for future studies.

Suggested Citation

  • Xu Tian & Umar H. A. Kohar & Saleh F. A. Khatib & Yan Wang, 2024. "Nudging Sustainable Development: Reviewing Energy Transition and Economic Development," Sustainability, MDPI, vol. 16(8), pages 1-29, April.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:8:p:3101-:d:1372261
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/8/3101/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/8/3101/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hosier, Richard H. & Dowd, Jeffrey, 1987. "Household fuel choice in Zimbabwe : An empirical test of the energy ladder hypothesis," Resources and Energy, Elsevier, vol. 9(4), pages 347-361, December.
    2. Victor Court & Pierre-André Jouvet & Frédéric Lantz, 2018. "Long-term endogenous economic growth and energy transitions," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    3. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(2), pages 353-377.
    4. Zhang, Dongyang & Kong, Qunxi, 2022. "Green energy transition and sustainable development of energy firms: An assessment of renewable energy policy," Energy Economics, Elsevier, vol. 111(C).
    5. Murshed, Muntasir, 2023. "Efficacies of technological progress and renewable energy transition in amplifying national electrification rates: contextual evidence from developing countries," Utilities Policy, Elsevier, vol. 81(C).
    6. Tenaw, Dagmawe, 2022. "Do traditional energy dependence, income, and education matter in the dynamic linkage between clean energy transition and economic growth in sub-Saharan Africa?," Renewable Energy, Elsevier, vol. 193(C), pages 204-213.
    7. Liu, Wei & Shen, Yedan & Razzaq, Asim, 2023. "How renewable energy investment, environmental regulations, and financial development derive renewable energy transition: Evidence from G7 countries," Renewable Energy, Elsevier, vol. 206(C), pages 1188-1197.
    8. Liao, Jixiang & Liu, Xingye & Zhou, Xueyan & Tursunova, Nargiza Rakhimovna, 2023. "Analyzing the role of renewable energy transition and industrialization on ecological sustainability: Can green innovation matter in OECD countries," Renewable Energy, Elsevier, vol. 204(C), pages 141-151.
    9. Li, Siying & Cifuentes-Faura, Javier & Talbi, Besma & Sadiq, Muhammad & Si Mohammed, Kamel & Bashir, Muhammad Farhan, 2023. "Dynamic correlated effects of electricity prices, biomass energy, and technological innovation in Tunisia's energy transition," Utilities Policy, Elsevier, vol. 82(C).
    10. Liang, Yunbao & Galiano, Jesus Cantero & Zhou, Hongxia, 2023. "The environmental impact of stock market capitalization and energy transition: Natural resource dynamics and international trade," Utilities Policy, Elsevier, vol. 82(C).
    11. King, Robert G. & Levine, Ross, 1994. "Capital fundamentalism, economic development, and economic growth," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 40(1), pages 259-292, June.
    12. Saleh F. A. Khatib & Dewi Fariha Abdullah & Ernie Hendrawaty & Ahmed A. Elamer, 2022. "A bibliometric analysis of cash holdings literature: current status, development, and agenda for future research," Management Review Quarterly, Springer, vol. 72(3), pages 707-744, September.
    13. Lin, Boqiang & Omoju, Oluwasola E., 2017. "Focusing on the right targets: Economic factors driving non-hydro renewable energy transition," Renewable Energy, Elsevier, vol. 113(C), pages 52-63.
    14. Zhang, Pengpeng & Zhang, Lixiao & Tian, Xin & Hao, Yan & Wang, Changbo, 2018. "Urban energy transition in China: Insights from trends, socioeconomic drivers, and environmental impacts of Beijing," Energy Policy, Elsevier, vol. 117(C), pages 173-183.
    15. Saleh F. A. Khatib & Dewi Fariha Abdullah & Ahmed A. Elamer & Raed Abueid, 2021. "Nudging toward diversity in the boardroom: A systematic literature review of board diversity of financial institutions," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 985-1002, February.
    16. Xiaohang Ren & Cheng Cheng & Zhen Wang & Cheng Yan, 2021. "Spillover and dynamic effects of energy transition and economic growth on carbon dioxide emissions for the European Union: A dynamic spatial panel model," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(1), pages 228-242, January.
    17. Victor Court & Pierre-André Jouvet & Frédéric Lantz, 2018. "Long-term endogenous economic growth and energy transitions," Post-Print hal-01549796, HAL.
    18. Svobodova, K. & Owen, J.R. & Harris, J. & Worden, S., 2020. "Complexities and contradictions in the global energy transition: A re-evaluation of country-level factors and dependencies," Applied Energy, Elsevier, vol. 265(C).
    19. Sun, Gebing & Li, Guozhi & Dilanchiev, Azer & Kazimova, Asli, 2023. "Promotion of green financing: Role of renewable energy and energy transition in China," Renewable Energy, Elsevier, vol. 210(C), pages 769-775.
    20. Rafaela Vital Caetano & António Cardoso Marques & Tiago Lopes Afonso, 2022. "How Can Foreign Direct Investment Trigger Green Growth? The Mediating and Moderating Role of the Energy Transition," Economies, MDPI, vol. 10(8), pages 1-14, August.
    21. Héger Gabteni & Adil Bami, 2018. "Energy transition: between economic opportunity and the need for financing?," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 41(1/2/3/4), pages 146-157.
    22. Neofytou, H. & Nikas, A. & Doukas, H., 2020. "Sustainable energy transition readiness: A multicriteria assessment index," Renewable and Sustainable Energy Reviews, Elsevier, vol. 131(C).
    23. Masera, Omar R. & Saatkamp, Barbara D. & Kammen, Daniel M., 2000. "From Linear Fuel Switching to Multiple Cooking Strategies: A Critique and Alternative to the Energy Ladder Model," World Development, Elsevier, vol. 28(12), pages 2083-2103, December.
    24. Gao, Chunjiao & Chen, Hongxi, 2023. "Electricity from renewable energy resources: Sustainable energy transition and emissions for developed economies," Utilities Policy, Elsevier, vol. 82(C).
    25. Bashir, Muhammad Farhan & Pan, Yanchun & Shahbaz, Muhammad & Ghosh, Sudeshna, 2023. "How energy transition and environmental innovation ensure environmental sustainability? Contextual evidence from Top-10 manufacturing countries," Renewable Energy, Elsevier, vol. 204(C), pages 697-709.
    26. Cole, Matthew A., 2004. "Trade, the pollution haven hypothesis and the environmental Kuznets curve: examining the linkages," Ecological Economics, Elsevier, vol. 48(1), pages 71-81, January.
    27. Sung-Young Kim, 2021. "National Competitive Advantage and Energy Transitions in Korea and Taiwan," New Political Economy, Taylor & Francis Journals, vol. 26(3), pages 359-375, May.
    28. Ma, Wanglin & Zhou, Xiaoshi & Renwick, Alan, 2019. "Impact of off-farm income on household energy expenditures in China: Implications for rural energy transition," Energy Policy, Elsevier, vol. 127(C), pages 248-258.
    29. Mamidi, Varsha & Marisetty, Vijaya B. & Thomas, Ewan Nikhil, 2021. "Clean energy transition and intertemporal socio-economic development: Evidence from an emerging market," Energy Economics, Elsevier, vol. 101(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Pihui & Han, Chuanfeng & Liu, Xinghua & Teng, Minmin, 2023. "Assessing the effect of nonfarm income on the household cooking energy transition in rural China," Energy, Elsevier, vol. 267(C).
    2. Li, Meng & Jin, Tianyu & Liu, Shenglong & Zhou, Shaojie, 2021. "The cost of clean energy transition in rural China: Evidence based on marginal treatment effects," Energy Economics, Elsevier, vol. 97(C).
    3. Dongzagla, Alfred & Adams, Abdul-Moomin, 2022. "Determinants of urban household choice of cooking fuel in Ghana: Do socioeconomic and demographic factors matter?," Energy, Elsevier, vol. 256(C).
    4. Sebri, Maamar, 2009. "La Zone Méditerranéenne Face à la Pollution de L’air : Une Investigation Econométrique [The Mediterranean Zone in front of Air pollution: an Econometric Investigation]," MPRA Paper 32382, University Library of Munich, Germany.
    5. Wang, Xiong & Wang, Xiao & Ren, Xiaohang & Wen, Fenghua, 2022. "Can digital financial inclusion affect CO2 emissions of China at the prefecture level? Evidence from a spatial econometric approach," Energy Economics, Elsevier, vol. 109(C).
    6. Mina Baliamoune-Lutz, 2017. "Trade and Environmental Quality in African Countries: Do Institutions Matter?," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 43(1), pages 155-172, January.
    7. Shahbaz, Muhammad & Nasreen, Samia & Ahmed, Khalid & Hammoudeh, Shawkat, 2017. "Trade openness–carbon emissions nexus: The importance of turning points of trade openness for country panels," Energy Economics, Elsevier, vol. 61(C), pages 221-232.
    8. Costantini, Valeria & Monni, Salvatore, 2008. "Environment, human development and economic growth," Ecological Economics, Elsevier, vol. 64(4), pages 867-880, February.
    9. Lukáš Režný & Vladimír Bureš, 2019. "Energy Transition Scenarios and Their Economic Impacts in the Extended Neoclassical Model of Economic Growth," Sustainability, MDPI, vol. 11(13), pages 1-25, July.
    10. Qiang Wang & Yuanfan Li & Rongrong Li, 2024. "Rethinking the environmental Kuznets curve hypothesis across 214 countries: the impacts of 12 economic, institutional, technological, resource, and social factors," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-19, December.
    11. van der Kroon, Bianca & Brouwer, Roy & van Beukering, Pieter J.H., 2013. "The energy ladder: Theoretical myth or empirical truth? Results from a meta-analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 20(C), pages 504-513.
    12. Li, Jiajia & Li, Houjian, 2022. "Spiritual support or living support: Which alleviates solid fuel use for rural households in ethnical minority regions of China?," Renewable Energy, Elsevier, vol. 189(C), pages 479-491.
    13. Stéphane Couture & Serge Garcia & Arnaud Reynaud, 2009. "Household Energy Choices and Fuelwood Consumption: An Econometric Approach to the French Data," LERNA Working Papers 09.08.284, LERNA, University of Toulouse.
    14. Shahbaz, Muhammad & Nasreen, Samia & Abbas, Faisal & Anis, Omri, 2015. "Does foreign direct investment impede environmental quality in high-, middle-, and low-income countries?," Energy Economics, Elsevier, vol. 51(C), pages 275-287.
    15. Chambwera, Muyeye & Folmer, Henk, 2007. "Fuel switching in Harare: An almost ideal demand system approach," Energy Policy, Elsevier, vol. 35(4), pages 2538-2548, April.
    16. Maes, Wouter H. & Verbist, Bruno, 2012. "Increasing the sustainability of household cooking in developing countries: Policy implications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(6), pages 4204-4221.
    17. Valeria Costantini & Chiara Martini, 2010. "A Modified Environmental Kuznets Curve for sustainable development assessment using panel data," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 10(1/2), pages 84-122.
    18. van der Kroon, Bianca & Brouwer, Roy & van Beukering, Pieter J.H., 2014. "The impact of the household decision environment on fuel choice behavior," Energy Economics, Elsevier, vol. 44(C), pages 236-247.
    19. Ikuho Kochi & Patricia Cecilia Medina López, 2013. "Más allá de la Curva Ambiental de Kuznets: comprensión de los determinantes de la degradación ambiental en México," Nóesis. Revista de Ciencias Sociales y Humanidades, Nóesis. Revista de Ciencias Sociales y Humanidades, vol. 22, pages 52-83, 43.
    20. Shao, Shuai & Yang, Lili & Yu, Mingbo & Yu, Mingliang, 2011. "Estimation, characteristics, and determinants of energy-related industrial CO2 emissions in Shanghai (China), 1994-2009," Energy Policy, Elsevier, vol. 39(10), pages 6476-6494, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:8:p:3101-:d:1372261. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.