Research on Long-Term Effects of Renewable Energy on Different Countries’ Economic Growth and Optimization Strategy

Abstract

Given the pressing need for sustainable development amidst climate change, the transition to renewable energy is critical for enhancing energy security and fostering economic resilience. This research examines the long-term effects of renewable energy on economic growth, with a focus on China as a pivotal case study. Although the development of renewable energy is beneficial to China in many aspects, such as the economy, trade balance, and employment, there are still several key problems in the process. High initial costs, technological and infrastructure limitations, global market fluctuation, and policies are the main focuses. To optimize the benefits of renewable energy, this study suggests establishing an initial economic support fund to facilitate the implementation of the policy, maintaining the current trend of increasing innovation investment and using diversified market strategies. Ultimately, the findings underscore the importance of renewable energy as a catalyst for sustainable economic growth, offering valuable insights for policymakers and stakeholders in China and beyond and highlighting the role of leadership in the global energy transition.