1. A dynamic relationship between renewable energy consumption, nonrenewable energy consumption, economic growth, and carbon dioxide emissions: Evidence from Asian emerging economies.
- Author
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Ali, Arshad, Radulescu, Magdalena, and Balsalobre-Lorente, Daniel
- Subjects
ECONOMIC conditions in Asia ,CARBON emissions ,ENERGY consumption ,NONRENEWABLE natural resources ,RENEWABLE energy sources ,ECONOMIC expansion ,CARBON dioxide ,GREENHOUSE gases - Abstract
This study aims to examine the linkages between renewable energy consumption (REC), nonrenewable energy consumption (NREC), carbon dioxide (CO
2 ) emissions, and economic growth in emerging Asian countries during the period 1975–2020 using a panel augmented mean group (AMG) estimation technique. The results of the long-run coefficient elasticity show that REC, NREC, employed labor force, and capital formation contribute significantly to long-run economic growth. The research analysis also found that NREC significantly increases long-term carbon emissions while REC significantly reduces long-term carbon emissions. Moreover, gross domestic product (GDP) and GDP3 have a significant positive impact on environmental degradation while GDP2 has a significant adverse impact on environmental pollution, thus validating the N-shaped Environmental Kuznets Curve (EKC) hypothesis in selected emerging Asian economies. The country-wise AMG strategy points out that India and Bangladesh have no EKC hypothesis, China and Singapore have an inverted U-shaped EKC hypothesis and Japan and South Korea have an N-shaped EKC hypothesis. Empirical evidence from Dumitrescu and Hurlin's causality test shows a two-way causality between REC and economic growth, supporting the feedback hypothesis. Strategically, this study suggests that more renewable energy is a viable strategy to address energy security and reduce carbon emissions to protect the environment and boost future economic growth in selected emerging Asian countries. [ABSTRACT FROM AUTHOR]- Published
- 2023
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