GREEN ECONOMY AND SUSTAINABLE GROWTH: ASSESSING THE ROLE OF RENEWABLE ENERGY INVESTMENTS IN EMERGING MARKETS

The purpose of this study is to examine 14 emerging countries from 1990 to 2022 to determine the extent to which investments in renewable energy have contributed to the development of a green economy and long-term prosperity. We investigate the relationship between sustainable development and globalization, as well as the comparison between the production of renewable and non-renewable forms of electricity and the formation of gross fixed capital in the local market. Based on the findings, it can be seen that the sustainable development indices for these economies are displaying both absolute and stochastic convergence. The results of conditional convergence indicate that investments in renewable power and local capital production significantly contribute to the promotion of sustainable development. On the other hand, globalization and the creation of non-renewable power have a detrimental impact on sustainable development. Through the use of Phillips-Sul's club convergence approach, two distinct convergence clubs have been successfully found. Group 1 is comprised of countries such as Brazil, China, Chile, Colombia, Greece, Korea, and Malaysia. Group 2 is comprised of countries such as South Africa, Poland, the Philippines, Saudi Arabia, and Hungary. Taking into consideration these results, developing nations may prioritize investments in renewable energy while adhering to suitable legislative frameworks in order to achieve sustainable development. Additionally, they may encourage international cooperation and environmentally responsible economic practices within the two convergence groups that have been identified.