Inclusive Growth of National Economies and New Energy Paradigm

The aim of the study is to assess and analyze the impact of energy consumption on the inclusive growth of European and Asia-Pacific economies in the context of the new paradigm of energy transition. The novelty of the study consists, firstly, in quantifying the inclusive growth of 55 economies over a 20-year retrospective period. Secondly, it is one of the first studies to assess the impact of consumption of different types of energy resources, reflecting the challenges of the energy transition, on the inclusive growth of the economies of Europe, Central Asia, and Asia-Pacific. The methodology for constructing the inclusive growth index is based on the principal component method, and the assessment of causal relationships between it and energy consumption indicators is based on three econometric models using panel data. Results (a) the main hypothesis of the study on the impact of energy consumption on the inclusive growth of national economies is quantitatively confirmed; (b) the multidirectional impact of six types of energy resources on the inclusive growth of the economies of Europe, Central Asia and Asia-Pacific countries is revealed. Conclusions on the prospects of implementation of the new energy paradigm in the countries of these regions are presented.