Empirical Analysis of Energy Consumption and Economic Growth in Post-Soviet Eurasia: Do They Matter for Foreign Policy?

Abstract

This study aims to evaluate the relationship between renewable and non-renewable energy consumption and economic growth in post-Soviet Eurasian countries by employing panel data from 15 countries from 1996 to 2018. The results reveal that the contribution of renewable energy consumption (REC) to economic growth is greater than non-renewable energy consumption. The overall findings imply that the transformation of energy consumption from non-renewable to renewable offers environmental advantages and growth opportunities. Furthermore, the transition to renewables may also expand the range of foreign relations policy options available for these countries, which, in turn, might contribute to a better alignment with evolving global regimes. Transition demands towards the long-term sustainability of global energy sources put pressure on countries to expand their domestic policy efforts and join international cooperation efforts. Therefore, post-Soviet Eurasian countries should develop strategic policy mechanisms and reforms designed to accelerate investments in renewable energy technologies.