Energy Economics and Market Transition Towards Sustainable Development

Abstract

The shift towards sustainable energy sources has emerged as an important economic issue owing to fluctuations in energy prices, pressure on the environment, security issues associated with energy, and increasing demand for clean energy sources. An integrated model of energy market drivers, transition processes, economic and market impacts, and sustainable development impacts is developed in this research. A comparative analysis is carried out for Conventional, Gradual Transition, and Accelerated Transition cases in relation to economic efficiency, market stability, environmental performance, and social accessibility. It is found that Accelerated Transition case has performed better in all respects, scoring 78 on economic efficiency, 80 on market stability, 88 on environmental performance, and 76 on social accessibility. The Intermediate Transition strategy results in balanced results, while the Conventional scenario attains the lowest level of environmental performance, which equals 35. This demonstrates the possibility of successful transformation of the energy market in terms of the sustainable development of energy through the coordinated effort on the use of renewable sources of energy, energy efficiency, electrification, storage, and grid modernization.