The Impact of Renewable Energy versus Fossil Fuel Energy on Human Development

Abstract

As the effects of the climate crisis grow more severe annually, countries around the world have increased their commitments to increasing renewable energy consumption to mitigate greenhouse gas emissions. While renewable energy consumption greatly reduces emissions, it is wondered if renewable energy or fossil fuel energy consumption contribute differently to country development. This study aims to understand differences in relationships between fossil fuel energy consumption and development versus renewable energy consumption and development. The Human Development Index (HDI) framework is used as a proxy to represent country development to incorporate a more holistic approach to quantifying development instead of merely using gross domestic product (GDP). Using a sample of low-to-middle income (LMI) countries, methods include statistical regression analysis to understand these relationships. Results show that there is a negative, linear correlation relationship between fossil fuel energy consumption and HDI. There is not enough evidence to suggest a regression relationship, linear or otherwise, between renewable energy consumption and HDI. The results add to the growing body of research that shows that the benefits from fossil fuels do not outperform renewable energy. Countries will continue to increase consumption of renewable energy for global decarbonization and to increase access to energy.