Does energy diversification cause an economic slowdown? Evidence from a newly constructed energy diversification index

This study introduces a new measure of energy diversification. We explore it's impact on economic development across the panels low-income, high-income, European Union (EU), Organization for Economic Co-operation and Development (OECD), G20 countries. The uses data from 1995 to 2018 utilizes Nonlinear Panel Autoregressive Distributed Lag (NPARDL) method. Our findings show that major economies (including G20) realize positive growth with increasing long-run However, some countries (e.g., OECD experience negative due diversification in short term. results also disclose does not favor low-income economies, both long terms. Therefore, more precautionary measures should be taken while diversifying sources.