Exploring the role of renewable energy in green job creation and sustainable economic development: An empirical approach

Abstract

The accelerating shift toward renewable energy sources has raised questions about their potential to foster green job creation and contribute to sustainable economic development. In recent years (2000–2023), the nexus between renewable energy, employment, and economic growth has gained critical attention, particularly within BRICS nations, where rapid industrialization and economic expansion necessitate sustainable growth models. This study investigates the role of renewable energy in promoting green employment and advancing sustainable development in BRICS countries, employing an Autoregressive Distributed Lag (ARDL) approach to capture both short- and long-term effects. Findings reveal that renewable energy significantly contributes to green job creation across BRICS economies, with a notable positive impact on employment in environmentally friendly sectors. Moreover, the analysis shows that renewable energy investments lead to sustainable economic growth by reducing carbon emissions and enhancing energy security. In the short term, renewable energy adoption fosters immediate economic gains, while in the long term, it supports sustained employment growth and environmental stability. Additionally, a feedback relationship between renewable energy use and green job creation suggests that as green jobs increase, the demand and efficiency of renewable energy expand, forming a virtuous cycle. Policy implications indicate that BRICS governments should prioritize investment in renewable energy infrastructure and workforce training to support green economic transformation and long-term sustainable growth.