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Advancing Sustainable Energy Transitions: Economic, Environmental, and Policy Perspectives

A special issue of Sustainability (ISSN 2071-1050). This special issue belongs to the section "Energy Sustainability".

Deadline for manuscript submissions: 29 December 2026 | Viewed by 1313

Editors


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Guest Editor
1. Faculty of Economics and Political Science, Cairo University, Cairo 12613, Egypt
2. College of Interdisciplinary Studies, Zayed University, Abu Dhabi 144534, United Arab Emirates
Interests: finance; sustainable development; economics of education; Islamic finance; Institutional economics; political economy

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Guest Editor
College of Interdisciplinary Studies, Zayed University, Abu Dhabi, United Arab Emirates
Interests: climate change adaptation; climate change literacy; sustainable livelihoods; circular economy; environmental policy

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Guest Editor
College of Interdisciplinary Studies, Zayed University, Abu Dhabi P.O. Box 144534, United Arab Emirates
Interests: organic; petroleum geochemistry; biomarker; earth sciences; environmental science

Special Issue Information

Dear Colleagues,

Scope and Purpose

The global transition toward sustainable energy systems necessitates a re-examination of the interplay between energy use, environmental quality and economic development. As climate change accelerates and inequalities widen, countries must decarbonize while preserving economic growth, job creation and social cohesion. Energy and climate challenges—from fossil fuel dependence and energy insecurity to air pollution and ecosystem degradation—demand careful economic and policy analysis.

A systems approach to sustainable energy transitions and environmental economics is needed to understand the interdependencies among energy resources, technological change, institutions and distributional outcomes. Digital transformation presents powerful opportunities to redesign energy systems and enhance efficiency, but it also raises new questions about access, governance and inequality. These dynamics are inherently place-based: successful transitions depend on local development pathways, territorial disparities and context-specific institutional capacities. As climate risks intensify, economic frameworks that internalize environmental externalities, recognize planetary boundaries and embed equity and intergenerational justice are vital for steering decision-making toward sustainable, low-carbon outcomes. This Special Issue addresses these needs by bringing together research on the economic, governance and justice dimensions of sustainable energy transitions. The aim of this Special Issue is to advance theoretical, empirical and policy-oriented work at the intersection of sustainable energy transitions, environmental economics and public policy. A core objective is to promote analytical approaches that integrate environmental limits, social inclusion, digital transformation and long-term sustainability into energy- and climate-related decision-making.

The Special Issue aligns with Sustainability’s mission to publish interdisciplinary research on urgent sustainability challenges. It links energy and environmental economics to broader questions of sustainable development, examining how economic instruments, regulatory frameworks and policies, as well as governance innovations, can accelerate sustainable energy transitions. The study also explores the distributional, justice and resilience dimensions of the energy–environment–economy nexus. Drawing on evidence-based insights, it seeks to provide policymakers, regulators, businesses and civil society with actionable recommendations. The Special Issue directly contributes to several Sustainable Development Goals (SDGs), including SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation and Infrastructure), SDG 12 (Responsible Consumption and Production), SDG 13 (Climate Action), SDG 15 (Life on Land) and SDG 16 (Peace, Justice and Strong Institutions). The Special Issue also emphasizes local and territorial dimensions of sustainable development, including how place-based policies and localized energy systems can support inclusive and resilient transitions.

Suggested themes include, but are not limited to:

  1. Economics of Sustainable Energy Transitions: Decarbonization pathways and energy-mix choices; energy efficiency and demand-side measures; climate risk, uncertainty and intergenerational equity in energy-economy models.
  2. Policy innovation for energy and environmental governance: Carbon pricing, energy taxation and subsidy reform; market-based and hybrid instruments, including green budgeting and tradable permits; and international coordination of energy and environmental regulation.
  3. Justice, localization and climate resilience in energy transitions: Distributional impacts of policies, energy and environmental inequality and poverty, place-based approaches and local value chains, energy justice and security and just transition strategies for workers and communities.
  4. Finance, investment and innovation for the energy transition: Green and climate finance; risk-sharing and blended finance mechanisms; innovation systems and industrial policy for clean energy; and the roles of development banks, sovereign wealth funds, private capital and Industry 4.0 technologies in enabling low-carbon systems.
  5. Methods and metrics for analyzing the energy–environment–economy nexus: Integrated assessment models, macro and input–output approaches, indicators for energy transitions and net-zero pathways and data, monitoring, evaluation and digital analytics for modelling the nexus.

Prof. Dr. Suzanna El Massah
Dr. Leonard Chirenje
Dr. Mohammad Alalaween
Guest Editors

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 250 words) can be sent to the Editorial Office for assessment.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-anonymized peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • sustainability
  • energy transitions
  • energy economics
  • environmental economics
  • climate change
  • carbon pricing
  • digital transformation
  • environmental policy
  • localization
  • just transition

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Published Papers (2 papers)

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Research

27 pages, 1896 KB  
Article
Joint Effects of New Energy Demonstration Cities and Low-Carbon City Pilots on Manufacturing Firms’ Green Total Factor Productivity: Supply Innovation or Cost Pressure?
by Ying Peng, Xinyue Wang and Weilong Gao
Sustainability 2026, 18(12), 5948; https://doi.org/10.3390/su18125948 - 10 Jun 2026
Viewed by 275
Abstract
Global climate governance is undergoing a rapid transformation, and energy systems are increasingly shifting toward low-carbon development. Against this background, improving manufacturing firms’ green total factor productivity (MFGTFP) is essential for achieving sustainable industrial development. China has introduced two major policy instruments: new [...] Read more.
Global climate governance is undergoing a rapid transformation, and energy systems are increasingly shifting toward low-carbon development. Against this background, improving manufacturing firms’ green total factor productivity (MFGTFP) is essential for achieving sustainable industrial development. China has introduced two major policy instruments: new energy demonstration cities (NEDCs) and low-carbon city pilots (LCCPs). NEDCs focus on optimizing the energy supply structure, whereas LCCPs seek to reduce carbon emissions through demand-side regulatory constraints. This study treated the joint implementation of NEDCs and LCCPs as a quasi-natural experiment and employed panel data from Chinese A-share listed manufacturing firms from 2007 to 2024. Using a multi-period difference-in-differences model and mechanism tests, we examined the effect of the joint implementation of these policies on MFGTFP. The empirical results show that the joint implementation of NEDCs and LCCPs significantly improves MFGTFP. This effect is more pronounced when NEDCs are introduced prior to LCCPs, particularly in cities with a higher government ecological governance capacity (GEGC) and in regions characterized by a lower carbon emission intensity (CEI). Mechanism analysis revealed that the joint effects of NEDCs and LCCPs operate through supply-side innovation and partially through demand-side cost-pressure channels. On the supply side, NEDCs promote green innovation (GI), thereby enhancing firms’ supply innovation. On the demand side, the evidence mainly reflects financing constraint (FC) alleviation rather than a positive capacity utilization (CU) channel. Together, these findings suggest that improvements in MFGTFP are driven by supply-side innovation incentives and partially by demand-side cost-pressure effects through FC alleviation. These findings provide firm-level evidence on how the joint implementation of energy and carbon policies promotes green productivity improvement. Full article
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23 pages, 676 KB  
Article
Innovation-Oriented Urban Policies and Energy Efficiency: Mechanisms, Spatial Spillovers, and Policy Insights
by Ran Wu, Yuxuan Chen, Ziyan Zhang and Xiaolei Wang
Sustainability 2026, 18(9), 4229; https://doi.org/10.3390/su18094229 - 24 Apr 2026
Viewed by 438
Abstract
Enhancing urban energy efficiency is central to low-carbon transition and broader urban sustainability. However, whether innovation-oriented urban policy can generate such gains, through which channels it operates, and whether its effects extend beyond pilot cities remain insufficiently understood. Focusing on China’s Innovative City [...] Read more.
Enhancing urban energy efficiency is central to low-carbon transition and broader urban sustainability. However, whether innovation-oriented urban policy can generate such gains, through which channels it operates, and whether its effects extend beyond pilot cities remain insufficiently understood. Focusing on China’s Innovative City Pilot (ICP) program, this study uses panel data for 274 Chinese cities from 2006 to 2022 and treats the staggered implementation of the program as a quasi-natural experiment. A multi-period difference-in-differences model is employed to examine the impact of the ICP program on urban energy efficiency. The results show that the ICP program significantly improves urban energy efficiency, and this conclusion remains robust across a series of robustness checks. Mechanism analysis further suggests that the policy effect operates through lower per capita carbon emissions and stronger green technological innovation. Heterogeneity analysis shows that the effect is more pronounced in larger cities, economically more developed cities, and cities with stronger pre-existing innovation capacity. Spatial analysis indicates that the program generates not only significant local benefits but also positive spillover effects on neighboring cities. Overall, these findings suggest that innovation-oriented urban policies can promote energy-efficient, low-carbon, and more sustainable urban development, while highlighting the importance of regional coordination and local innovation capacity in shaping policy effectiveness. Full article
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