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In recent times, physical-capital investment has been outweighed by research and development expenditure in terms of their growth impact. However, how such expenditure affect economic expansion in the presence of energy consumption is yet to be given thorough attention in the literature. Consequently, this study used data from 1997 to 2015 for 16 EU countries to demonstrate how expenditure on research and development drives growth in the presence of renewable and nonrenewable energy consumption. Empirical results from the Pool Mean Group Autoregressive distributive lag model (PMG-ARDL) revealed that in the short run, investment in research and development adversely affect growth prospect in the EU. However, in the long run, research-led growth is evident alongside energy consumption, although the latter outweighs the former. Additionally, result from Dumitrescu and Hurlin Panel Causality tests showed a feedback causality between energy consumption, research and expenditure and economic growth. The findings of this study make it essential for EU countries to boost spending on renewable energy sources. Additionally, EU countries should pay closer attention to investment in research and development in order to sustain the plan for long term advancement in sustainable power sources for feasible energy and economic development. Image 1 • Economic impact of R&D and energy consumption in EU is examined. • Physical-capital investment outperforms R&D expenditure. • Energy consumption affect economic growth than the effect of R&D in the long run. • Increased renewable energy development in the EU is encouraged. • More investment in research and development by the EU states should be sustained. [ABSTRACT FROM AUTHOR]

Globally we are at a crossroad whereby energy production and consumption in themselves is partly blamed for climate change issues and global warming menace. The question that comes to heart is do we stop seeking energy production and consumption? of course no. Thus, there is a need for innovation on part of economies as they seek energy for sustainable development. This country-specific study focuses on South African, which reflects the above highlights menace in no small measure where her economic growth trajectory is plagued with high CO 2 emission. To this end, we explore the nexus between coal energy consumption, economic growth, renewable energy consumption and CO 2 emission between annual periods of 1980–2017. This study applied a battery of econometric techniques to underscore the relationship between the outlined variables. According to the ARDL bounds test to cointegration in conjunction with Kripfganz and Schneider (2018) critical approximation p-values both affirm long-run equilibrium relationship between study variables. Empirical evidence gives credence to the growth-induced pollution emission in South Africa as reported by the Autoregressive distributed lag Method, fully modified ordinary least squares and dynamic ordinary least squares as robustness test for soundness of analysis. This finding suggests that South Africa's economic growth trajectory is not clean. This preposition is resonated with the result of coal energy consumption also dampening environmental quality. Financial development shows strong statistical strength to improve the quality of the environment. These outcomes are indicative for policymakers as there is urgent need to energy transition from conventional energy based on fossil fuel (coal energy) to renewable energy mix which is more environmentally friendly should be pursued in South Africa. [Display omitted] [ABSTRACT FROM AUTHOR]