Coal’s Dilemma in the Green Economy: Implications for Sustainable Growth

The global shift towards a green economy presents a significant challenge for developing nations heavily reliant on coal as a primary energy source. While coal consumption drives economic growth, especially in emerging economies, it also poses substantial environmental risks, notably in the form of increased carbon emissions. This study examines the complex relationship between coal consumption, economic growth, and carbon emissions in developing countries using panel data analysis from 2000 to 2020. The findings reveal a positive correlation between coal consumption and GDP growth, highlighting coal’s critical role in sustaining industrialisation and economic expansion. However, the research also underscores the negative environmental impacts, with rising coal use contributing significantly to higher carbon emissions, thus exacerbating the climate crisis. These results point to a paradox for developing nations: while coal supports short-term economic goals, it jeopardises long-term sustainability by undermining global efforts to mitigate climate change. This research advocates for a balanced policy approach, promoting the adoption of renewable energy and clean technologies to reduce dependency on coal, ensuring that economic growth can be achieved without compromising environmental goals. Future research should explore the social and economic impacts of transitioning to cleaner energy in coal-dependent regions.