DOES ENERGY DEMOCRACY AFFECT ECONOMIC GROWTH? EARLY EVIDENCE FROM HIGH INCOME COUNTRIES DURING 1997–2020

Abstract

In accordance with UN sustainable development policies, this study examines the impact of energy democracy, energy equality, exports, globalization, financial development, and natural resources on economic growth patterns of high-income countries from 1997 to 2020. The study finds evidence of a long-run relationship among variables. Empirical estimations from FMOLS and DOLS models reveal that energy democracy, exports, globalization, and financial resources enhance economic progress, while natural resource consumption provides an opposite effect. This study suggests that high-income countries should promote community-based renewable energy projects and energy-efficient practices as well as implementing an adequate harmonisation of energy democracy policies and processes.