Renewable energy and sustainable development: Evidence from OECD countries

This study aims to investigate the effects of renewable energy on GDP and sustainable development. The data of Economic Cooperation and Development Organization (OECD) countries covering the period of 1990–2015 are included in the analysis. In this study, GDP and adjusted net savings (ANS) are used as indicators of sustainable development. ANS calculation is closely related to the 2030 Sustainable Development Goals and the concept of sustainable development. According to IV (two‐stage least square—2SLS) and two‐stage general method of moments IV (2SLS) estimates, renewable energy positively affects ANS per capita. However, non‐renewable energy negatively affects ANS per capita. Therefore, renewable energy causes an increase in sustainable development, while non‐renewable energy causes a decrease. As a result, OECD countries are recommended to prefer renewable energy rather than non‐renewable energy. OECD countries should make the necessary arrangements for the growth and development of the renewable energy sector and implement them quickly. Preferring renewable energy is extremely important to achieve the 2030 Sustainable Development Goals.