Energy access challenge and the role of fossil fuels in meeting electricity demand: Promoting renewable energy capacity for sustainable development

[Display omitted] •Environmental sustainability is evaluated through electricity and renewable energy.•Renewable energy sources can mitigate environmental degradation.•CO2 emissions and renewable energy capacity have a negative correlation.•Renewable energy capacity and electricity access are crucial to sustainability.•Environmental considerations should be integrated into decision-making processes. The energy access challenge remains a significant barrier to sustainable development, with millions of people still needing access to modern energy services. Fossil fuels have played a crucial role in meeting electricity demand, but they face challenges and drawbacks in terms of environmental sustainability, energy security, and climate change. This study examines how renewable and non-renewable energy generation capacity impacted the environment in 53 upper-middle-income countries from 1990 to 2020, using energy access and alternative energy sources as mediating variables. The findings of this study provide valuable insights into the complex relationship between renewable energy generation capacity, energy access, alternative energy sources, and environmental conditions in upper-middle-income countries. The positive relationship between renewable energy generation capacity and environmental conditions emphasizes the importance and potential of renewable energy sources in mitigating environmental degradation. Additionally, the findings indicate that energy access also plays a crucial role in shaping energy generation patterns, with higher levels of access being associated with increased renewable energy generation and decreased reliance on non-renewable energy sources. These findings highlight the urgent need for policies and measures to promote renewable energy adoption and prioritize energy access to mitigate environmental degradation and achieve sustainable development goals.