The dynamic association between different strategies of renewable energy sources and sustainable economic growth under SDGs

This study is trying to examine the different renewable energy sources and their impact on the economic growth at the state level under sustainable development goal seven (SDG-7). The SDGs goal (7th) defines the importance of clean, affordable and modern energy system in the World. Moreover, this study is attempting to increase the influence of sustainable energy consumption by employing dataset of selected Asian countries. This study uses annual panel data set and applies Augmented Mean Group (AMG), alongside Common Correlated Effects Mean Group (CCEMG) methods for data analysis. The overall results indicate the consumption of renewable energy sources have significantly contribution towards the economic prosperity of these economies. Furthermore, policy makers should focus on expansionary fiscal policies to enhance the use of environmental friendly power generation in these regions. •First, this research adds to the body of knowledge on the subject issue by investigating the effects of renewable energy sources on economic growth.•Second, the paper demonstrates the causal relationship between the production of renewable energy sources, and economic growth, along with conventional energy utilization, low trade barriers, government spending.•We have used panel data rather than time-series data in order to establish the causal relationships between the above-mentioned factors as this approach reduces the issues relating to multicollinearity.•Appropriately, this study addresses the do renewable energy sources improve the clean environment by enhancing economic prosperity among selected Asian economies?