Global energy demand increases overtime, especially in emerging market economies, producing potential negative environmental impacts, particularly on the long term, on nature and climate changes. Promoting renewables is a robust policy action in world energy-based economies. This study examines if an increase in renewables production has a positive effect on the Brazilian economy, partially offsetting the SARS-CoV2 outbreak recession. Using data on Brazilian economy, we test the contribution of renewables on the economy via a ML architecture (through a LSTM model). Empirical findings show that an ever-greater use of renewables may sustain the economic growth recovery, generating a better performing GDP acceleration vs. other energy variables.
Keywords: Brazil; Economic growth; LSTM; Renewable energy resources; Sustainability.
© 2021. The Author(s).