The nexus of urbanization and renewable energy productivity: implications for sustainable development in developing Asia nations

PurposeThis study aims to examine the impact of urbanization and renewable energy productivity on sustainable development in developing Asia economies. Moreover, it investigates the potential of sustainable urbanization in these economies through the lens of renewable energy productivity.Design/methodology/approachUsing a balanced panel data set of 20 developing Asian economies from 2000 to 2020, this study uses the sustainable development goals score as the dependent variable. Principal explanatory variables include urban population and renewable energy productivity, with globalization and government expenditure as control variables in sustainable development function. This study uses diagnostic tests such as cross-sectional dependence, unit-root test and cointegration to ensure robustness. For the empirical analysis, the pooled mean group autoregressive distributed lag estimation technique is used for both long- and short-run dynamics, supplemented by the panel-corrected standard errors and feasible generalized least squares methods for the robustness check.FindingsThe long-run results indicate that urbanization and renewable energy productivity significantly enhance sustainable development. This study also identifies globalization and government expenditure as significant drivers of sustainable development. The long-run results further identify the potential moderating role of renewable energy productivity, thereby helping urbanization in stimulating sustainable development. This study recommends developing policies that promote sustainable urban infrastructure, such as energy-efficient buildings and smart cities, while investing in renewable energy technologies and systems to enhance their integration into urban development plans and maintain sustainable development.Originality/valueThis study contributes to the literature by highlighting the nuanced impact of renewable energy productivity on sustainable development in the context of urbanization. It underscores the synergistic benefits of aligning urban growth with renewable energy initiatives, suggesting strategic fiscal policies and international cooperation as essential components for advancing sustainable development in developing Asian economies.