This study examines the impact of renewable energy transition on green economic growth in the Latin American (LA) region, focusing on the mechanisms, heterogeneous effects, and spatial spillover effects of the transition. The research uses panel data from 14 LA countries (Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Panama, Paraguay, Peru, and Uruguay) spanning 2003 to 2020. The study introduces the Green Gross Domestic Product per capita (GGDPPc) and the Renewable Energy Transition Index (RETI) to measure green economic growth and the renewable energy transition, respectively. The results confirm that the transition to renewable energy significantly boosts green economic growth, but its effect varies by country's geographical location, fossil fuel dependence, and mineral resource dependence. The study identifies five mediating variables between renewable energy transition and green growth: capital investment, dependency on hydropower in electricity generation, residential electricity consumption per capita, human capital, and the creation of formal jobs. It also finds a negative spatial spillover effect of renewable energy transition in the LA region. The study contributes to existing literature by introducing new indicators, analyzing the mechanisms of renewable energy transition, and examining the heterogeneous impact of natural resource dependency on green economic growth. The findings suggest that renewable energy transition can promote green economic growth in the LA region, but its effectiveness depends on factors such as geographical location, natural resource dependency, and institutional quality. The study also highlights the importance of addressing the resource curse hypothesis and the need for policies that promote sustainable development and environmental sustainability in the LA region.This study examines the impact of renewable energy transition on green economic growth in the Latin American (LA) region, focusing on the mechanisms, heterogeneous effects, and spatial spillover effects of the transition. The research uses panel data from 14 LA countries (Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Panama, Paraguay, Peru, and Uruguay) spanning 2003 to 2020. The study introduces the Green Gross Domestic Product per capita (GGDPPc) and the Renewable Energy Transition Index (RETI) to measure green economic growth and the renewable energy transition, respectively. The results confirm that the transition to renewable energy significantly boosts green economic growth, but its effect varies by country's geographical location, fossil fuel dependence, and mineral resource dependence. The study identifies five mediating variables between renewable energy transition and green growth: capital investment, dependency on hydropower in electricity generation, residential electricity consumption per capita, human capital, and the creation of formal jobs. It also finds a negative spatial spillover effect of renewable energy transition in the LA region. The study contributes to existing literature by introducing new indicators, analyzing the mechanisms of renewable energy transition, and examining the heterogeneous impact of natural resource dependency on green economic growth. The findings suggest that renewable energy transition can promote green economic growth in the LA region, but its effectiveness depends on factors such as geographical location, natural resource dependency, and institutional quality. The study also highlights the importance of addressing the resource curse hypothesis and the need for policies that promote sustainable development and environmental sustainability in the LA region.