THE IMPORTANCE OF RENEWABLE ENERGY IN THE ECONOMIC DEVELOPMENT OF COUNTRY.

Each stage of economic development has been accompanied by a characteristic energy transition, moving from one fuel source to another, as the main factor of energy production growth in developing economies. While the energy demand continues to increase everywhere in the world, the levels of carbon dioxide emitted into the atmosphere have also been increasing, which is negatively affecting efforts to combat climate change. Consumption of non-renewable energy can boost economic growth, but it is undoubtedly a significant source of environmental pollution and carbon dioxide emission. The paper was implemented via dynamic panel data estimation methods, to research the long-term relationship between renewable energy consumption and economic growth. The study has concluded that there is a long-term balance relationship between renewable energy consumption and economic growth and the empirical results suggest that renewable energy consumption has a positive impact on economic growth. [ABSTRACT FROM AUTHOR]