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The research aims to explore how renewable energy, environmental technology, and FDI influence economic growth in South Africa.

December 8, 2025SustainabilityOpen Access

Driving the Green Transition: The Role of Renewable Energy, Environmental Technology, FDI, and Globalization in South Africa’s Sustainable Growth: Evidence from a CS-ARDL Approach

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The research aims to explore how renewable energy, environmental technology, and FDI influence economic growth in South Africa.
Utilized the CS-ARDL model with AMG and CCEMG estimators
Investigated data from 1997 to 2024
Analyzed both long-run and short-run dynamics using quantitative methods
Renewable energy significantly contributes to green economic growth with coefficients of 0.318 (long-run) and 0.142 (short-run)
Environmental technology also positively impacts growth with coefficients of 0.274 (long-run) and 0.105 (short-run)
FDI has positive effects with coefficients of 0.186 (long-run) and 0.083 (short-run)
Globalization shows a weak negative long-run effect (coefficient of -0.097)
The study indicates a stable long-run adjustment process confirmed by the significant error-correction term

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Analysis shows renewable energy and environmental technology boost economic growth in South Africa, indicating stronger green investments are needed.

Aida Smaoui (2025) studied this question.

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Analysis shows renewable energy and environmental technology boost economic growth in South Africa, indicating stronger green investments are needed.