Conference Agenda

This study investigates whether the resource curse hypothesis can be extended to renewable energy by constructing and empirically testing a novel metric of renewable resource rent. Using a global panel dataset of 46 countries from 2010 to 2022, we define renewable resource rent as the difference between industrial electricity price and levelized cost of electricity (LCOE), multiplied by renewable electricity generation. This framework enables the first direct measurement of economic rents from solar and wind energy. Our analysis reveals that both solar and wind resource rents are positively associated with national economic growth, suggesting the presence of a “renewable resource blessing” rather than a curse. Notably, solar potential significantly amplifies the growth effect of solar rents, while wind potential shows a weaker and inconsistent moderating effect. These findings are robust across alternative model specification. By directly incorporating renewable rents and potentials into a macroeconomic growth model, this study offers a methodological innovation and contributes empirical clarity to the largely conceptual debate on the renewable resource curse. Contrary to prior theoretical expectations that emphasize the risks of a solar-related curse in developing economies, our results highlight conditions under which solar energy can foster sustainable growth. We conclude with policy recommendations focused on institutional quality, energy diversification, and equitable value-chain participation to ensure that renewable energy development leads to long-term economic benefits. This research advances the debate on energy and growth by offering a replicable, rent-based approach to analyzing the sustainability of the global energy transition.