Impact of renewable energy consumption on sustainable development in Central Asia

Abstract The energy transition in Central Asia faces multiple risks while lacking empirical assessment of renewable energy use from a sustainability perspective. This paper examined the relationship of renewable energy consumption with energy intensity and carbon intensity in Central Asia during 1993—2019, using the seemingly unrelated regression (SUR). Weighing the heterogeneity of countries in the region, the results showed that downstream countries build an inverted U‐shaped relationship between renewable energy consumption and carbon intensity, while the whole region indicates an inverted U‐shaped relationship between renewable energy consumption and energy intensity. Compared with hydrocarbon, nonfossil energy is expected to serve as a greater driving force for economic growth in the future, alleviating socio‐economic dependence on fossil fuels in downstream countries and generating additional revenues to ensure energy security in upstream countries. The findings suggest policymakers to considerably mitigate the risks of decarbonization across the region.