Research Article

Green Energy Transition and Development Outcomes in Emerging Economies

Volume: 10 Number: 2 August 2, 2026
EN TR

Green Energy Transition and Development Outcomes in Emerging Economies

Abstract

This paper investigates the economic and environmental effects of the green energy transition in emerging market economies. Focusing on ten major emerging countries from 2010 to 2022, we examine how renewable energy consumption relates to economic growth, sustainable development, and environmental outcomes. Using panel data and a two-way fixed effects model (with country and year fixed effects), we analyze three key dimensions of development: gross domestic product (GDP) per capita, broad-based sustainable development (measured via the Sustainable Development Goals (SDG) Index and Human Development Index (HDI), and environmental quality (per capita CO₂ emissions). The empirical results indicate that expanding renewable energy usage significantly reduces CO₂ emissions, but it may entail a modest short-term trade-off with economic growth. Renewable energy’s impact on composite sustainable development indicators is less immediate: we find no clear short-run effect on the SDG index, even as renewable uptake shows a positive association with the HDI. Additionally, foreign direct investment (FDI) exhibits a negative relationship with carbon emissions (suggesting a potential “pollution halo” effect), whereas greater trade openness is associated with higher emissions. These findings highlight important policy implications for emerging economies — namely, while green energy transitions can yield substantial environmental benefits and support human development, complementary economic policies are needed to mitigate short-run growth costs and fully realize sustainable development gains.

Keywords

References

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Details

Primary Language

English

Subjects

Growth, Development Economics - Macro

Journal Section

Research Article

Publication Date

August 2, 2026

Submission Date

October 5, 2025

Acceptance Date

May 22, 2026

Published in Issue

Year 2026 Volume: 10 Number: 2

APA
Güleryüz, E. H. (2026). Green Energy Transition and Development Outcomes in Emerging Economies. Fiscaoeconomia, 10(2), 1-18. https://doi.org/10.25295/fsecon.1797177
AMA
1.Güleryüz EH. Green Energy Transition and Development Outcomes in Emerging Economies. FSECON. 2026;10(2):1-18. doi:10.25295/fsecon.1797177
Chicago
Güleryüz, Ece Handan. 2026. “Green Energy Transition and Development Outcomes in Emerging Economies”. Fiscaoeconomia 10 (2): 1-18. https://doi.org/10.25295/fsecon.1797177.
EndNote
Güleryüz EH (August 1, 2026) Green Energy Transition and Development Outcomes in Emerging Economies. Fiscaoeconomia 10 2 1–18.
IEEE
[1]E. H. Güleryüz, “Green Energy Transition and Development Outcomes in Emerging Economies”, FSECON, vol. 10, no. 2, pp. 1–18, Aug. 2026, doi: 10.25295/fsecon.1797177.
ISNAD
Güleryüz, Ece Handan. “Green Energy Transition and Development Outcomes in Emerging Economies”. Fiscaoeconomia 10/2 (August 1, 2026): 1-18. https://doi.org/10.25295/fsecon.1797177.
JAMA
1.Güleryüz EH. Green Energy Transition and Development Outcomes in Emerging Economies. FSECON. 2026;10:1–18.
MLA
Güleryüz, Ece Handan. “Green Energy Transition and Development Outcomes in Emerging Economies”. Fiscaoeconomia, vol. 10, no. 2, Aug. 2026, pp. 1-18, doi:10.25295/fsecon.1797177.
Vancouver
1.Ece Handan Güleryüz. Green Energy Transition and Development Outcomes in Emerging Economies. FSECON. 2026 Aug. 1;10(2):1-18. doi:10.25295/fsecon.1797177
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