The paradox of oil and sustainable development: evidence from OPEC and non-OPEC countries
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Abstract
The energy factor plays a critical role in achieving the Sustainable Development Goals (SDGs). Due to a lack of research comparing different energy perspectives in relation to the SDGs, this paper examines the impact of renewable energy, oil consumption, oil production, and inflation on the achievement of the SDGs. The study focuses on eight countries from the Organization of the Petroleum Exporting Countries (OPEC) and eight non-OPEC countries, covering the period from 2000 to 2022. Through quantitative analysis, using fixed effects models and random effects models with panel data, the study examines how fluctuations in oil production and consumption, as well as renewable energy adoption and inflation, are linked to progress towards achieving the SDGs. The results show that renewable energy consumption and oil consumption have a positive impact on the overall achievement of the SDGs, but oil production has a negative impact on the overall achievement of the SDGs. In addition, the surprising result is that oil consumption contributes more to the achievement of the Sustainable Development Goals and only negatively impacts climate change (SDG 13). The study highlights the urgent need for a balanced approach to energy management, emphasizing the transition to renewable energy to ensure long-term sustainability.
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References
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