A comparative study of renewable and fossil fuels energy impacts on green development in Asian countries with divergent income inequality

Abstract

The paper aims to analyze the impacts of renewable and non-renewable energy resources on the Sustainable Development Index in 16 Asian countries with a high GINI index and 13 Asian countries with a low GINI index from 2000 to 2021, utilizing the ARDL (Auto Regressive Distributed Lag) - PMG (Pooled Mean Group) estimation approach. Empirical evidence suggests that fossil fuel has a detrimental effect on the Sustainable Development Index. Conversely, the development of clean energy shows only short-term positive effects in Asian countries with a low GINI coefficient. Notably, green financing emerges as a crucial contributing factor to the Sustainable Development Index. To implement practical policies, it is essential to focus on developing green financing tools within digital platforms and leveraging Fintech capabilities. Furthermore, expanding financial inclusion and enhancing economic resiliency status are identified as critical strategies to bolster the Sustainable Development Index.