Enhancing low-carbon economic growth by renewable energy uptake in countries with per capita gross domestic product between 10 and 20 kUSD

The study investigates how countries with per capita GDP between 10 and 20 kUSD (further referred to as middle-income countries) should shape domestic economies to enhance low-carbon economic growth and how low-carbon transition can be eventually turned to opportunity. The research starts from comparing and analysing middle-income economies, especially their CO2 emissions indicators. Also relationships between CO2 emissions and income for 138 countries obtained by applying regression analysis are constructed and evaluated. Outcomes from these analyses are configured in the form of climate policy. The proposed climate policy involves a set of key low-carbon technologies and affordable assets fitting the needs of middle-income countries. Besides, the climate policy aims to create the enabling business environment relying on economic, societal, regulatory and political enablers. The resulting economic system facilitates clean renewable energy uptake and triggers sustainable economic development finally potentially leading to low-carbon economic growth. The study emphasises that by making effective technologies and assets choices and reducing system costs, middle-income countries might be able to deliver affordable energy, thus driving industrialisation and finally enhancing economic growth. The proposed economic instruments can ease investments in capital intensive renewable energy infrastructures primarily by increasing capital availability, managing risks and reducing interest rates which are all typically unfavourable in middle-income countries.