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strategies differ between advanced and emerging economies.

strategies differ between advanced and emerging economies. Advanced economies typically have financial resources to support renewable energy adoption. Some emerging economies have the potential to leapfrog traditional energy development pathways.

3/24/2025

red tractor with farming attachment on field during daytime
red tractor with farming attachment on field during daytime

How Do Energy Transition Strategies Differ Between Advanced And Emerging Economies ?

Energy transition strategies differ significantly between advanced and emerging economies due to their unique economic, technological, and resource-related challenges:

Advanced economies typically have more established infrastructure and financial resources to support renewable energy adoption. They often focus on replacing existing fossil fuel-based systems with cleaner alternatives. In contrast, emerging economies face the dual challenge of meeting rapidly growing energy demands while simultaneously transitioning to sustainable sources. These countries often struggle with limited financial resources, volatile political environments, and insufficient regulatory frameworks, which hinder their ability to adopt renewable energy technologies [1].

Interestingly, some emerging economies have the potential to leapfrog traditional energy development pathways. For instance, Egypt, as a representative case for sunbelt economies, could achieve a 100% renewable energy system by 2050, dominated by solar photovoltaics. This approach could be more cost-effective than following the traditional energy development path of advanced economies [2]. Similarly, Nicaragua's case study demonstrates that emerging economies can cost-effectively achieve a low-carbon grid while pursuing multiple development objectives [3].

In conclusion, while advanced economies focus on replacing existing systems, emerging economies must balance rapid growth with sustainability[4] . Successful energy transition in emerging economies requires tailored strategies, including financial development, improved institutional quality, and international cooperation [5]. Policy reforms that balance investment risks and enable financial mobilization are crucial for these countries to achieve their energy transition goals [2]. The global energy transition necessitates collaborative efforts between advanced and emerging economies, emphasizing technology sharing and innovative financial solutions to address the unique challenges faced by developing nations [5] .

References

1.Rehman A, Batool Z, Ma H, Ain QU. The renewable energy challenge in developing economies: An investigation of environmental taxation, financial development, and political stability. Natural Resources Forum. Wiley-Blackwell; 2024;

2.Elsayed M, Aghahosseini A, Breyer C. High cost of slow energy transitions for emerging countries: On the case of Egypt’s pathway options. Renewable Energy. Elsevier; 2023;210:107–26.

3.De Leon Barido DP, Callaway D, Kammen DM, Johnston J, Moncada MV. Evidence and future scenarios of a low-carbon energy transition in Central America: a case study in Nicaragua. Environmental Research Letters. Institute of Physics Publishing; 2015;10:104002.

4.Hoskisson RE, Lau CM, Wright M, Eden L. Strategy in Emerging Economies. Academy of Management Journal. Academy of Management; 2000;43:249–67.

5.Onysiuk S. Mechanisms of international economic cooperation to support the global energy transition: ways to improve. Scientific notes. Kyiv National Economic University Named After Vadym Hetman; 2024;254–71.