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ENERGY INSECURITY, ECONOMIC GROWTH, AND THE ROLE OF RENEWABLE ENERGY: A CROSS-COUNTRY PANEL ANALYSIS

Many countries rely on the international energy market as their main energy supplier, thus leading to issues of insecurity. Energy insecurity can potentially hinder economic growth and cause sustainability problems. This paper builds on cross-country panel data and estimates the relationship between energy insecurity and economic growth. We explore the multi-dimensional feature of energy insecurity through energy dependency, renewable energy share, and price effects. Our results show statistically significant negative impacts on growth due to energy insecurity, but the effects are mostly relevant to developing economies. Moreover, we show that the development renewable energy sector can mitigate the negative effects.