Relationship between renewable resources and electricity generation and its impact on environmental quality

Zhe Zhang (), Mughesa Rubab () and Abdul Ghafoor Awan ()
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Zhe Zhang: Dalian Polytechnic University
Mughesa Rubab: Department of Economics, Institute of Southern Punjab
Abdul Ghafoor Awan: Institute of Southern Punjab

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2025, vol. 27, issue 5, No 76, 11797-11817

Abstract: Abstract This research study has explored nexus between renewable resources and electricity generation by focusing on the vital role of low-cost energy production as a sustainable solution to Pakistan’s crippling energy crisis. The study utilized secondary data spanning from 1998 to 2018. The dependent variable was electricity generation while independent variables include five key renewable energy resources solar energy, nuclear energy, biomass and waste, and hydro energy. In order to analyze long-run relationship between these variables’ statistical techniques, such as correlation analysis, and Johansen co-integration test were employed. The gap in the reviewed literature was found as no research was conducted on the combined effects of five renewables on electricity generation, its cost and impact on environmental quality in Pakistan. The findings reveal that there is a sustained and positive long-term association between renewables and electricity generation, its cost of production and improvement of environmental quality. In the light of these findings, the study suggests to (i) prioritize development of renewable resources to ensure future energy security, (ii) achieve cost reductions to provide relief to consumers, (iii) improve environmental quality, and (iii) incorporate renewable energy resources into Pakistan’s energy policy as strategic approach to mitigate current energy crisis and fostering long-term sustainability.

Keywords: Energy crisis; Renewable resources; Energy demand; Balance of payment (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10668-023-04383-7

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