Achieving twin targets using fossil fuels and renewable energy in hybrid regimes

Abstract

This study investigates the interplay between energy sources and hybrid regimes in achieving economic growth and environmental sustainability. The study utilises annual panel data comprising 33 hybrid regime countries spanning 1990 to 2022, and the objectives are: 1) to quantify the impacts of fossil fuels versus renewable energy on economic growth, 2) to assess the effects of fossil fuels and renewable energy on the ecological footprint, and 3) to test how mimicked democratic features moderate these links. The study employs instrumental variable fixed effects, the Generalised Method of Moments, and mean techniques to address the research objectives. Findings indicate that both fossil fuels and renewable energy contribute to economic growth, but only renewable energy, coupled with the current state of mimicked democratic features in hybrid regimes, ensures the attainment of environmental sustainability targets. Hybrid regimes should lower their guards and embrace energy transition; however, the pace of energy transition should be commensurate with their level of economic prosperity, thereby displacing issues of rushed transition without recourse to the welfare of citizens and their source of livelihoods. • Examine the role of energy sources (fossil fuels and renewable energy) in attaining twin targets in hybrid regimes. • Adoption of Instrumental Variables fixed effects, Generalised Method of Moments and Mean techniques. • Interaction analysis to decipher significant pathway to economic growth and environmental sustainability for hybrid regimes. • Study sample comprises thirty-three countries across Africa, Europe, Asia, Central, South and North America.