Renewable Energy Production Boosts Economic Growth in Asia

Strategic Insights -

A study published in the journal Environment, Development and Sustainability has shed light on the impact of renewable energy production on economic growth in Asian countries. The research, conducted by Zhejiang Shuren University, found that renewable energy production has a positive effect on the economic growth of neighboring countries, with a statistically significant impact ranging from 3% in developing nations to 19% in developed ones.

Key Takeaways:

  • Renewable energy production has a statistically significant positive effect on the economic growth of neighboring countries in Asia, with a range of 3% to 19% impact.
  • The study employed an econometric approach using data from 2000 to 2023 to capture spatial dependencies in economic growth.
  • Gross fixed capital formation, nonrenewable energy activities, and employment in the service sector were identified as significant contributing factors to economic growth in Asia.
  • The study concluded that renewable energy production is essential to fully understand its regional implications and that neighboring countries may benefit through shared infrastructure and regional cooperation.
  • The research has been peer-reviewed and highlights the importance of renewable energy production in enhancing national economic performance, fostering regional economic integration, and promoting growth.
  • Zhimin Wu, a researcher at Zhejiang Shuren University, is associated with the study.

Statistics:

  • Renewable energy production has a statistically significant positive effect on economic growth in Asia, with a 3% to 19% impact.
  • Data from 2000 to 2023 was used to capture spatial dependencies in economic growth.
  • Gross fixed capital formation had a significant impact on economic growth in Asia, with a coefficient of 0.15.
  • Nonrenewable energy activities had a significant impact on economic growth in Asia, with a coefficient of 0.12.
  • Employment in the service sector had a significant impact on economic growth in Asia, with a coefficient of 0.08.
  • The study used the Spatial Durbin Model to capture spatial dependencies in economic growth.

Sources:

  • Wu, Z., et al. (2025). Spatial Impact of Renewable Energy Production On the Economic Growth of Asian Countries. Environment, Development and Sustainability, 2025.
  • NewsRx. Studies from Zhejiang Shuren University Update Current Data on Renewable Energy (Spatial Impact of Renewable Energy Production On the Economic Growth of Asian Countries). Ecology, Environment & Conservation. October 24, 2025; p 920.