THE ROLE OF GREEN ENERGY IN SUSTAINABLE DEVELOPMENT: EVIDENCE FROM THE MONTE-CARLO SIMULATION ALGORITHM USING BAYES APPROACH

This research investigates the impact of green energy - power consumption from wind, solar, hydroelectric and other renewable sources (including hydro, wind, solar, geothermal, wave and tidal, and bioenergy) on sustainable development in 77 countries worldwide during the period 2005-2022. The Bayesian approach assumes that the observed data sample is fixed and the model parameters are random. The posterior distribution of the parameters will be estimated based on the observed sample and the prior distribution of those parameters, using it to interpret the results. The Bayes result shows that the average per capita energy consumption from wind, solar, hydro, and renewable energy positively affects sustainable development. The probability of a positive impact from wind, solar, and renewable energy on sustainable development is nearly 100%, while this value is relatively low at 58.35% for hydro energy, indicating that the use of hydro energy has a positive impact on sustainable development but has not fully realized its potential. Based on these findings, the author proposes appropriate policy implications for the countries and Vietnam.