Nexus Between Energy Consumption and Sustainable Economic Growth in CIS Countries

In this article, we apply dynamic panel techniques-specifically, Panel FMOLS, DOLS, and Panel ARDL-to analyze the effects of energy consumption, foreign direct investment, openness to trade, and consumption of renewable energy on economic development in the Commonwealth Independent States from 1992 to 2022. Results from using panel FMOLS, DOLS, and CCR models show that FDI, energy consumption, and renewable energy consumption all contribute favorably to economic development over the long term. However, there is a detrimental connection between the extent of trade openness and economic growth. Outcomes obtained by applying dynamic panel estimating approaches have also been validated by results from Quantile regression using the Method of Moments. In order to stimulate economic development, the empirical evidence suggests that the government should promote and support alternative sources of energy. Further policy consequences are investigated more thoroughly in the paper.