Renewable energy for sustainable development in Asia‐Pacific region: Do foreign direct investment and regulatory quality matter?

Bhuvaneskumar Annamalaisamy and Sivakumar Vepur Jayaraman

Sustainable Development, 2023, vol. 31, issue 1, 108-124

Abstract: Global climate change has already created noticeable ill‐effects on the environmental system and attaining further economic growth without compromising environmental quality is a difficult challenge for every country on this planet. Inspired by United Nation's Sustainable Development Goals (SDGs) core agenda, we investigated the singular, combined, and coupling influence of income growth, foreign direct investment inflows, renewable energy, and regulatory quality (RQ) on climate change under the scale, technique, and composition effects hypothesis. This analysis enables the creation of appropriate policy interventions to mitigate the severity of climate change in the future for the diverse countries in the Asia‐Pacific region. The study adopted the dynamic heterogenous estimation methodology responsible for accounting for the heterogeneity. We estimated 14 empirical models for the panel data from 1996 to 2015 of Asia‐Pacific countries. Empirical results validated the scale, technique, and composition effects and include that the progress in the share of renewable energy consumption in emerging countries by 1% reduces the greenhouse gas emissions by 0.24% (99% Confidence interval [C.I]), whereas 1% increase in the interactive effect of renewable energy and RQ deepens the emissions by 0.35% (99% C.I). The income level and RQ aggravate greenhouse gas emissions; whereas renewable energy diminishes the overall emissions level in emerging and advanced economies. This article's empirical outcomes would facilitate climate change mitigation‐related policy interventions of diverse economies in the Asia‐Pacific region to attain Sustainable Development Goals (SDGs‐ 7 and 13).

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/sd.2377

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:sustdv:v:31:y:2023:i:1:p:108-124

Access Statistics for this article

Sustainable Development is currently edited by Richard Welford

More articles in Sustainable Development from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().