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Role of governance indicators and natural resources reserves on energy efficiency and productivity change: Evidence from developed and developing G20 countries

Year: 2025

Type: article

Abstract: Efficient energy use is crucial for sustainable growth in G20 economies. This study examines how governance quality and resource endowments shape energy efficiency and total factor energy productivity from 1996 to 2020 using a two-stage framework. Findings indicate that developed countries benefit from strong political stability and effective institutions, which enhance energy performance, while corruption and early-stage renewable adoption can temporarily limit gains. In developing countries, governance challenges and resource-related paradoxes slow efficiency improvements, though strategic renewable deployment and institutional strengthening create opportunities for progress. These results highlight the different dynamics of energy performance across country groups and provide guidance for targeted policies to promote sustainable and resilient energy systems globally.

Source: Sustainable Futures

DOI: 10.1016/j.sftr.2025.101314

Authors: Barakat Elfarra, Rizwana Yasmeen, Wasi Ul Hassan Shah

Institutions: Southwestern University of Finance and Economics, Panzhihua University, Zhejiang Shuren University

Language: English

Topic: Energy, Environment, Economic Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Affordable and clean energy, Industry, innovation and infrastructure, Decent work and economic growth, Peace, justice, and strong institutions

Open Access status: gold

Estimated APC paid: $2,340