Energy Transition, Environmental Improvement and Economic Growth

Abstract

Against the background of global carbon neutrality, environmental governance and climate action, energy transition has become a core strategy to balance low-carbon environmental protection and high-quality economic growth. Using panel data of 28 global economies from 2010 to 2024, this paper examines how energy transition (renewable energy development and energy efficiency) drives economic growth and improves environmental quality, with a focus on its environmental benefits, carbon reduction effects and regional heterogeneity. We introduce CO 2 emissions per capita and carbon intensity (CO 2 /GDP) as direct environmental dependent variables into the panel regression framework. Results show that energy transition significantly promotes economic growth while reducing carbon emissions and improving environmental quality. The effect is stronger in developed economies. Economic complexity and energy financing positively moderate the link, while geopolitical risk negatively moderates it. Emerging green technologies further enhance both economic benefits and environmental performance. This study enriches the theory of energy transition-environment-economy synergy and provides a reference for countries to achieve low-carbon development, environmental governance and sustainable growth.