The impacts of renewable energy utilization on economic and environmental sustainability: Panel data analysis

This study aims to examine the impact of renewable energy use on economic and environmental sustainability within the context of G8 countries. Increasing global energy demand and the environmental and economic costs associated with fossil fuel-based production structures have made renewable energy sources a critical alternative for sustainable development. In this context, the study analyzes the effects of renewable energy use on both environmental and economic sustainability within a comprehensive framework. The study employs panel data analysis using data from G8 countries covering the period 2000-2023. In this framework, two separate models are constructed: one for environmental sustainability and the other for economic sustainability. The models investigate the effects of renewable energy use on key economic indicators such as economic growth and external dependency, as well as on environmental indicators including greenhouse gas emissions and environmental pollution. The empirical findings reveal that renewable energy use significantly reduces environmental pollution while simultaneously promoting economic growth. These results indicate that investments in renewable energy are not only essential for achieving environmental sustainability but also serve as a key driver of economic performance. Accordingly, it is recommended that policymakers prioritize strategies that promote renewable energy investments, accelerate the energy transition process, and reduce dependence on fossil fuels.