A dynamic relationship between renewable energy consumption, nonrenewable energy consumption, economic growth, and carbon dioxide emissions: Evidence from Asian emerging economies

Arshad Ali, Magdalena Radulescu and Daniel Balsalobre-Lorente

Energy & Environment, 2023, vol. 34, issue 8, 3529-3552

Abstract: This study aims to examine the linkages between renewable energy consumption (REC), nonrenewable energy consumption (NREC), carbon dioxide (CO 2 ) emissions, and economic growth in emerging Asian countries during the period 1975–2020 using a panel augmented mean group (AMG) estimation technique. The results of the long-run coefficient elasticity show that REC, NREC, employed labor force, and capital formation contribute significantly to long-run economic growth. The research analysis also found that NREC significantly increases long-term carbon emissions while REC significantly reduces long-term carbon emissions. Moreover, gross domestic product (GDP) and GDP 3 have a significant positive impact on environmental degradation while GDP 2 has a significant adverse impact on environmental pollution, thus validating the N-shaped Environmental Kuznets Curve (EKC) hypothesis in selected emerging Asian economies. The country-wise AMG strategy points out that India and Bangladesh have no EKC hypothesis, China and Singapore have an inverted U-shaped EKC hypothesis and Japan and South Korea have an N-shaped EKC hypothesis. Empirical evidence from Dumitrescu and Hurlin's causality test shows a two-way causality between REC and economic growth, supporting the feedback hypothesis. Strategically, this study suggests that more renewable energy is a viable strategy to address energy security and reduce carbon emissions to protect the environment and boost future economic growth in selected emerging Asian countries.

Keywords: Renewable energy consumption; nonrenewable energy consumption; carbon emission; economic growth; Asian emerging countries (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:sae:engenv:v:34:y:2023:i:8:p:3529-3552

DOI: 10.1177/0958305X231151684

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