Nexus of biomass energy, key determinants of economic development and environment: A fresh evidence from Asia

Syed Ale Raza Shah, Syed Asif Ali Naqvi, Sabahat Riaz, Sofia Anwar and Nasir Abbas

Renewable and Sustainable Energy Reviews, 2020, vol. 133, issue C

Abstract: The rising trend in environmental pollution in current years has elevated the demand for clean energy to reduce environmental stress, and the newly developed biomass energy source is contributing well in this regard. This paper quantifies, if biomass energy consumption is performing as the main driver for economic development and clean energy source to decrease the pollution levels. Associations among carbon emission, economic development, and biomass energy have been estimated by using the Common correlated effects mean group, and Panel vector autoregressive techniques for 38 countries of Asia from 1990 to 2017. Granger causality and Impulse-response functions are also measured. A closer look at the results shows that 1% increase in biomass consumption will increase CO2 emission by 1.698%. The study also found support for the presence of an N-shaped relationship between per capita income and emission and found trade openness and urbanization as the contributors to environmental pollution. Outcomes provide empirical evidence that there is bidirectional causality between real economic growth to inflation and financial development to inflation in the first model. The second model also showed bidirectional causality between real economic growth to financial development and inflation, and inflation to trade openness. The findings show that biomass energy consumption is acting as the key driver for economic development and performing as a non-clean energy source in decreasing pollution.

Keywords: Economic development; Biomass energy; Carbon emission; Panel VAR; Asia (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1364032120305335
Full text for ScienceDirect subscribers only

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:eee:rensus:v:133:y:2020:i:c:s1364032120305335

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic
http://www.elsevier. ... 600126/bibliographic

DOI: 10.1016/j.rser.2020.110244

Access Statistics for this article

Renewable and Sustainable Energy Reviews is currently edited by L. Kazmerski

More articles in Renewable and Sustainable Energy Reviews from Elsevier
Bibliographic data for series maintained by Catherine Liu ().