Renewable energy development, unemployment and GDP growth: South Asian evidence

Mohammad Rifat Rahman, Md. Mufidur Rahman and Roksana Akter

Arab Gulf Journal of Scientific Research, 2023, vol. 42, issue 3, 1044-1059

Abstract: Purpose - This study aims to investigate the interplay between renewable energy development, unemployment and GDP growth within Bangladesh, India, Pakistan and Sri Lanka. The research underscores the significant role of renewable energy plays in stimulating economic growth and mitigating unemployment, offering crucial policy insights for sustainable growth in South Asia. Design/methodology/approach - Utilizing the autoregressive distributive lag (ARDL) framework and Toda Yamamoto causality through the vector autoregressive (VAR) approach, the study analyzes the long-term and short-term impacts of these variables from 1990 to 2019. Findings - This study reveals a significant co-integration among renewable energy consumption, unemployment and GDP growth in selected South Asian countries. The long-term estimation shows renewable energy consumption influences negatively economic progression in Bangladesh, with no notable correlation with unemployment. In contrast, Sri Lanka demonstrates an optimal relationship among all the variables. Short-run assessments reveal a significant positive relationship between renewable energy consumption and economic growth in India, while an inverse relationship is evident in Pakistan. Moreover, the relationship between unemployment and economic progression, the result shows a negative and significant relationship in India and Sri Lanka. Research limitations/implications - The study emphasizes the need for policy development concerning renewable energy development, unemployment reduction and sustainable economic growth in South Asia. While limitations exist, future research can expand upon this work by incorporating varied data, additional countries or alternative modeling techniques. Originality/value - This research offers a unique exploration into the multidimensional impacts of renewable energy consumption, unemployment and economic growth in the South Asian context, an area previously unexplored in such depth.

Keywords: Renewable energy; Unemployment; GDP growth; ARDL; Causality test (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)

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:eme:agjsrp:agjsr-04-2023-0152

DOI: 10.1108/AGJSR-04-2023-0152

Access Statistics for this article

Arab Gulf Journal of Scientific Research is currently edited by Prof. Soud Mohammed Almahamid

More articles in Arab Gulf Journal of Scientific Research from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().