The Impact of Renewable Energy Consumption on Economic Growth : A Comparative Study of South Asia

Abstract

This study investigates the relationship between the uptake of renewable energy and the advancement of economic growth in South Asian countries (Bangladesh, Bangladesh, India, Nepal, Bhutan, and Sri Lanka) between 1991 and 2020. To look into the relationships across the long and short terms between renewable energy as the dependent variable and GDP, GDP growth per square, CO2 emissions, carbon footprint, globalization, and inflation as the independent variables, Furthermore, cointegration analysis and an Autoregressive Distributed Lag (ARDL) model are currently being used for this purpose. Existing results indicate a significant, long-lasting, and favorable affect of renewable energy on GDP, indicating its potential to promote economic growth. Remarkably, the relationship between GDP growth per square and renewable energy is currently being noticed negatively, which lends credence to the Environmental Kuznets Curve idea. Furthermore, it shows negative correlations between renewable energy and CO2 emissions over the long term, underscoring the promise of this energy source for environmental sustainability. Moreover, the association between long-term economic indices and renewable energy is mostly unaffected by inflation and globalization. It is projected that this research will offer insightful information to stakeholders, policymakers, and scholars who are interested in the complex relationship between South Asian economic development and the incorporation of renewable energy sources. As things stand, the results highlight how sustainable energy regulations are essential to promoting both environmental preservation and economic growth in the area.