Renewable Resource Curse Hypothesis: Could Renewable Resources Foster Sustainable Development?

This study explores whether the resource curse hypothesis applies to renewable energy by introducing a novel metric of renewable resource rent. Using a panel dataset of 46 countries (2010–2022), we define renewable rent as the product of electricity generation and the gap between industrial electricity price and levelized cost (LCOE). This enables the first empirical test of economic rents from solar and wind power. Results show both rents are positively associated with national economic growth, indicating a potential “renewable resource blessing.” Solar potential significantly strengthens this effect, while wind potential shows a weaker, inconsistent influence. Findings are robust across alternative specifications. By integrating renewable rents and natural potential into macroeconomic models, this study offers methodological innovation and empirical clarity to a largely conceptual debate. We conclude with policy recommendations emphasizing institutional quality, energy diversification, and inclusive value-chain participation to ensure that renewable energy development fosters long-term, sustainable growth.