A Novel Investigation to Explore the Impact of Renewable Energy, Urbanization, and Trade on Carbon Emission in Bhutan

Abdul Rehman (), Mohammad Mahtab Alam, Magdalena Radulescu, Rafael Alvarado (), Daniela Mihai and Madalina Brutu
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Mohammad Mahtab Alam: Department of Basic Medical Sciences, College of Applied Medical Science, King Khalid University, Abha 62561, Saudi Arabia
Magdalena Radulescu: Department of Finance, Accounting, Economics, University of Pitesti, Str. Targu din Vale, No. 1, 110040 Pitesti, Arges, Romania
Daniela Mihai: Department of Management and Business Administration, University of Pitesti, Str. Targu din Vale, No. 1, 110040 Pitesti, Arges, Romania
Madalina Brutu: Department of Management and Business Administration, University of Pitesti, Str. Targu din Vale, No. 1, 110040 Pitesti, Arges, Romania

Energies, 2022, vol. 15, issue 9, 1-17

Abstract: The present study explores the impact of renewable energy usage, economic progress, urbanization, and trade on carbon emissions in Bhutan. The stationarity among the variables was tested by employing the two unit root tests by taking the annual data series variables from 1982–2020. A symmetric (ARDL) technique was utilized to analyze the associations among variables with short- and long-run estimations. In addition, the cointegration regression method using FMOLS and DOLS was used in this investigation to discover the robustness of the study variables. Findings showed that via long-run assessment the variables renewable energy consumption, urbanization, and trade have adverse connections with CO 2 emission, while the variable economic progress shows a constructive linkage with carbon emission. However, the short-run assessment showed that the variable economic growth has a positive impact on carbon emissions. Further, the variables renewable energy consumption, urbanization, and trade have an adverse relation to carbon emissions in Bhutan. The consequences of both FMOLS and DOLS also mean that the variable renewable energy usage, urbanization, and trade have an adverse influence on carbon emission, while economic growth has a constructive linkage with CO 2 emission. Greenhouse gas emissions are undeniably an increasing global issue. This problem can only be handled by prudent legislation and funding. Despite having fewer greenhouse gas emissions than industrialized economies, Bhutan’s government needs to develop new rules to address this issue in order to ensure environmental sustainability and economic growth.

Keywords: renewable energy; trade; urbanization; carbon emissions; economic growth (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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