This study examines the impact of renewable energy transition on green economic growth in Latin America (LA) using panel data from 14 countries over the period 2003-2020. The research aims to identify the primary mechanisms through which renewable energy transition affects green economic growth, assess the heterogeneous effects based on geographical location and natural resource dependency, and evaluate spatial spillover effects. The study introduces a new index, the Renewable Energy Transition Index (RETI), and a novel measure, Green Gross Domestic Product per capita (GGDPpc), to capture the multidimensional aspects of renewable energy transition and its impact on green economic growth. The results confirm that the transition to renewable energy significantly boosts green economic growth, but its effect varies by country's geographical location and natural resource dependency. Five mediating variables—capital investment, dependency on hydropower, residential electricity consumption per capita, human capital, and formal job creation—are identified as key factors. Additionally, a negative spatial spillover effect is found, indicating that the transition's benefits extend beyond individual countries. The study contributes to the literature by providing a comprehensive analysis of the renewable energy transition's impact on green economic growth in LA, addressing gaps in previous research.This study examines the impact of renewable energy transition on green economic growth in Latin America (LA) using panel data from 14 countries over the period 2003-2020. The research aims to identify the primary mechanisms through which renewable energy transition affects green economic growth, assess the heterogeneous effects based on geographical location and natural resource dependency, and evaluate spatial spillover effects. The study introduces a new index, the Renewable Energy Transition Index (RETI), and a novel measure, Green Gross Domestic Product per capita (GGDPpc), to capture the multidimensional aspects of renewable energy transition and its impact on green economic growth. The results confirm that the transition to renewable energy significantly boosts green economic growth, but its effect varies by country's geographical location and natural resource dependency. Five mediating variables—capital investment, dependency on hydropower, residential electricity consumption per capita, human capital, and formal job creation—are identified as key factors. Additionally, a negative spatial spillover effect is found, indicating that the transition's benefits extend beyond individual countries. The study contributes to the literature by providing a comprehensive analysis of the renewable energy transition's impact on green economic growth in LA, addressing gaps in previous research.