IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v89y2026ics1544612325025644.html

Does the clean energy transition enhance economic sustainability? A study on energy use efficiency in developing countries

Author

Listed:
  • Guo, Yun
  • Hu, Ke

Abstract

Against the backdrop of global concerns regarding climate change and sustainable development, this study focuses on the challenges faced by developing countries in balancing economic growth and energy transition. It examines whether the shift toward clean energy contributes to economic sustainability. Using data from developing countries spanning 2010–2020, empirical analysis reveals that the clean energy transition significantly promotes economic sustainability, with improved energy use efficiency serving as a key mechanism. Further analysis indicates that economic institutional distance exerts an adverse moderating effect on the positive impact of clean energy transition. Heterogeneity analysis also shows that the promoting effect of clean energy transition on economic sustainability is more pronounced in countries with lower financial risks and higher government efficiency. This research provides theoretical support and policy insights for developing countries aiming to advance green energy policies and achieve a balance between economic and environmental objectives.

Suggested Citation

  • Guo, Yun & Hu, Ke, 2026. "Does the clean energy transition enhance economic sustainability? A study on energy use efficiency in developing countries," Finance Research Letters, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:finlet:v:89:y:2026:i:c:s1544612325025644
    DOI: 10.1016/j.frl.2025.109315
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612325025644
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2025.109315?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

    Statistics

    Access and download statistics

    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:eee:finlet:v:89:y:2026:i:c:s1544612325025644. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    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.