Assessing the impact of transition from nonrenewable to renewable energy consumption on economic growth-environmental nexus from developing Asian economies. (15th April 2021)

• Record Type: Journal Article
• Authors: Mohsin, Muhammad; Kamran, Hafiz Waqas; Atif Nawaz, Muhammad; Sajjad Hussain, Muhammed; Dahri, Abdul Samad
• Is Part Of: Journal of environmental management. Volume 284(2021)
• Publication Date: 2021-04-15
• Subjects: Asian economies -- Econometric model -- Environment management -- Greenhouse gasses -- Sustainability -- Renewable energy; C22 -- O10 -- Q42 -- Q43; Environmental policy -- Periodicals; Environmental management -- Periodicals; Environment -- Periodicals; Ecology -- Periodicals; 363.705
• DOI: 10.1016/j.jenvman.2021.111999
• Languages: English
• ISSNs: 0301-4797

Abstract

Abstract: Greenhouse gasses have adverse effects on global warming and air pollution and need to be optimized by minimizing the contributing factors. This work analyzes the effects of economic growth and energy resources (renewable and nonrenewable) on the emissions of greenhouse gasses (GHG). A 2000–2016 panel data from 25 developing Asian countries is analyzed through a robust Random Effect (RE) approach and Hausman Taylor Regression (HTR). Findings show a positive correlation between economic growth and energy consumption, while a 1% increase in renewable energy consumption results in a 0.193% decrease in carbon emissions. Economic growth and renewable energy are positively correlated in both the short and long term, which implies a valid feedback hypothesis. The findings indicate the significant contribution of nonrenewable energy resources to greenhouse gas emissions and the positive impact of renewable resources on greenhouse gas emissions' control. Furthermore, this study highlights the potential of developing Asian economies to preserve the environment through more robust regional environmental policies and renewable energy resources. In light of this study's findings, policymakers in Asian developing economies should develop policies on Renewable Energy infrastructure (RE) to improve GDP and reduce greenhouse gas emissions. Highlights: The Impact of transition from nonrenewable to renewable energy has been measured. Bidirectional causality is found in Asian economies. 1% rise in renewable energy decreases 0.193% carbon emission in long-run. Diversification towards non-renewable energy mitigate greenhouse gas emissions. Renewable public awareness is mandatory way forward for emission reduction.