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Effects of economic complexity and metallic mineral resources on renewable energy transition in developing countries

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  • Viglioni, Marco Túlio Dinali
  • Calegario, Cristina Lelis Leal
  • Bruhn, Nádia Campos Pereira

Abstract

Metallic minerals are essential for the transition to renewable energy that is required to mitigate climate change by reducing carbon dioxide (CO2) emissions. However, many developing countries exhibit relatively low levels of economic complexity, particularly in terms of their technological capabilities, which may pose a significant challenge to renewable energy projects. In this study, we investigate the effects of economic complexity and metallic minerals on renewable energy consumption. We investigate a panel dataset of 77 developing countries from 1995 to 2021 using multiple robust techniques, including feasible generalized least squares (FGLS), fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (DOLS), canonical co-integrating regression (CCR), two-stage least squares (2SLS-IV) estimators and Dumitrescu–Hurlin causality analysis. The results indicate a negative relationship between mineral resources and renewable energy consumption. The results further suggest that economic complexity negatively affects clean energy production. Despite this, the robustness estimates confirm the positive moderating effect of economic complexity on mineral resources and renewable energy. These results have significant policy implications and underscore the need to explore the true potential of mineral resources in developing economies. This research calls for policymakers to focus on the economic complexity of their economies to escape the resource curse paradox and unlock the full potential of metallic minerals for transitioning to cleaner energy sources.

Suggested Citation

  • Viglioni, Marco Túlio Dinali & Calegario, Cristina Lelis Leal & Bruhn, Nádia Campos Pereira, 2025. "Effects of economic complexity and metallic mineral resources on renewable energy transition in developing countries," Resources Policy, Elsevier, vol. 102(C).
    • Handle: RePEc:eee:jrpoli:v:102:y:2025:i:c:s0301420725000546
    DOI: 10.1016/j.resourpol.2025.105512
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