Renewable Energy and Green Economy: Pathways to Sustainable Growth in Developing Countries

Abstract

The global shift toward a green economy offers developing countries an opportunity to pursue inclusive and sustainable economic growth. This conceptual article examines the role of renewable energy in facilitating such a transformation. Drawing on document-based qualitative methods, it synthesizes international academic literature and development reports to explore how renewable technologies—particularly solar, wind, and bioenergy—support economic development while mitigating environmental risks. The findings reveal that renewable energy contributes to job creation, energy security, and poverty alleviation, especially in rural and underserved regions. However, the study also identifies institutional, financial, and policy barriers that hinder the full realization of these benefits. These include weak governance, insufficient infrastructure, and fragmented policy environments. The article introduces a multi-theoretical framework—integrating endogenous growth theory, ecological modernization, development economics, and maqāṣid al-sharī‘ah—to propose a holistic approach to green energy adoption. It emphasizes the need for cross-sectoral strategies, capacity-building, and ethical finance instruments such as zakāt and waqf to mobilize local resources. Ultimately, the study argues that renewable energy, when embedded within coherent national development agendas, can act as a cornerstone of resilient and equitable growth in the Global South.