Analyzing the Economic Implications of the Energy Crisis and the Shift towards Renewable Energy Sources for Sustainable Development

Abstract

The topic of this research paper is the intricate economic dynamics of the energy crisis and of the world’s shift to renewable energy sources. Based on a mixed method approach to the study, the quantitative analysis on energy consumption, prices and reports on the economic indicators are combined with the qualitative analysis in terms of government policies, agreements and stakeholder perceptions. The quantitative findings suggest that there exists correlations between energy misuse and economic factors that indicate the vulnerability of traditional economy for crisis from energy dependence. More specifically, a higher energy prices leads to a lower GDP growth and a larger increase in investment of renewables projects, consequently chaining the interactions of energy variables to the economic outcomes. While analytical insights address the structural contexts responding to the establishment of the renewable energy landscape, qualitative insights reveal how government policy and international agreement, amongst other things, affect renewable energy, as well as divergent stakeholder views on job creation and investments. These findings are triangulated and the analysis does integration, and it is seen as the renewable energy sector is resilient, and that they require adaptive policies to journey the evolving energy landscape. Its contribution to policy, industry stakeholder and research thinking on the economic dimension of the global energy transition provides nuance of insights.