Efficiency of renewable energy for sustainable development: empirical evidence in OIC countries

PurposeThis study aims to evaluate the efficiency performance of Organization of Islamic Cooperation (OIC) countries in promoting renewable energy development based on income level and region from 2012 to 2021, identifying key factors that contribute to their success or hinder progress.Design/methodology/approachThe research uses data envelopment analysis (DEA) to measure the efficiency of renewable energy adoption. Input variables include labor force, gross domestic product and export-to-import ratio, whereas output variables are renewable energy's share in total final energy consumption and installed renewable electricity per capita for solar energy.FindingsSignificant variations in efficiency across OIC countries and regions were identified. South Asia ranked the highest in efficiency (0.899), followed by GCC nations (0.865), while Southeast Asia showed the lowest efficiency (0.585). High-income nations demonstrated superior efficiency (0.854), with Qatar having the highest score (0.999), while middle-income countries lagged (0.481). Countries like Algeria, Comoros and Indonesia were found to be inefficient, with considerable potential for improvement. Inefficiencies are attributed to factors such as insufficient labor distribution and underutilized outputs.Research limitations/implicationsThis study is limited by its focus on certain economic factors, excluding considerations such as energy storage, grid capacity and technological innovation. In addition, geopolitical factors that may affect energy policy were not addressed.Practical implicationsThe study provides actionable insights for policymakers, emphasizing the need for increased investment in renewable energy infrastructure, regulatory frameworks like feed-in tariffs and workforce realignment to support green energy transitions. Specific recommendations include rural electrification and financial support for off-grid systems, particularly in low-efficiency nations like Indonesia and Bangladesh.Originality/valueThis research contributes to understanding how income and regional factors influence renewable energy efficiency in OIC countries, providing critical guidance for policymakers and investors on improving efficiency and sustainability.