Document Type : ORIGINAL ARTICLE

Authors

• Fatimah Hosseinpour ¹
• nastaran bahmaei ²
• motamedi sahar ²
• amin Tabae Izady ²

¹ , Khorramshahr University of marine Science and Technology

² Faculty of economics and Management، Khorramshahr University of marine Science and Technology, Khorramshahr، Iran

Abstract

This study investigates the relationship between renewable energy consumption and production, environmental pollutants, and social development in member countries of OECD and OPEC over the period 1990–2020. Using panel data and the Dumitrescu–Hurlin causality test, it examines the role of social development in facilitating the transition from fossil fuel-based energy consumption to cleaner energy sources. The Social Development Index (SDI) is constructed by aggregating fifteen indicators related to demographics, education, health, and access to technology, reflecting both societal capacity and welfare outcomes. The findings indicate that in OECD countries, a robust bidirectional causal relationship exists between SDI and renewable energy consumption (REC), meaning that improvements in social development promote higher renewable energy use, while the expansion of renewable energy, in turn, reinforces social development indicators. Furthermore, social development in these countries is significantly associated with better control of CO₂ emissions. In contrast, OPEC countries show no statistically significant causality between SDI and REC or SDI and CO₂ emissions. The only meaningful link is a unidirectional causality from CO₂ emissions to REC, suggesting that rising pollution levels provoke a reactive increase in renewable energy adoption rather than proactive social development-driven change. These contrasting patterns underscore the importance of social development levels, institutional maturity, and the integration of social and environmental dimensions in shaping energy transition processes. Overall, this research emphasizes that integrating social development and sustainable energy policies is crucial for successful energy transitions and effective reduction of environmental pollutants.

Keywords

• Renewable Energy
• Social Development
• CO₂ Emissions

Main Subjects

• Co2 Emissions