Energy Transitions Worldwide: Tracking Power Generation and Economic Growth Across Ten Nations

Climate change is identified as a major global challenge, with the energy sector, heavily reliant on fossil fuels, being central to this crisis. In response, a growing international movement toward low-carbon development and alternative energy sources is clearly underway. This study provides a comparative analysis of power generation across the ten largest global economies from 2015 to 2024. Its central focus is the proportion of renewable energy sources and the intricate relationship between energy production and economic performance. Based on data from the Energy Institute and the World Bank, the analysis examines the causal relationship between power generation and economic growth using the Granger causality test. The findings reveal that power generation patterns vary considerably, with some countries such as China, the United States, and India dominating in power generation, while others like France, Brazil, and Canada lead in low-carbon power generation due to strong nuclear and hydroelectric backgrounds. The Granger causality test indicated unidirectional causality in Canada and the United Kingdom, where Gross Domestic Product (GDP) was a significant predictor of power generation. Conversely, in Italy, power generation was found to be a significant explanatory factor for GDP. Overall, the study underscores the importance of long-term commitment to moving away from fossil fuels, while acknowledging that national circumstances play a substantial role in shaping each country’s energy transition process.