Abstract
This study empirically estimates the impact of clean and non-clean energy consumption on economic growth and carbon dioxide emissions within the framework of the environmental Kuznets curve and pollution haven hypothesis in the case of PIMC countries from 1980 to 2019. The results of the panel cointegration test proposed by Westerlund (2007) show a long-term equilibrium relationship among the variables of each designated model. The long-term elasticities of economic growth and carbon emission estimated by AMG, CCEMG, and MG estimators indicate that both clean and non-clean energy consumption has a significant impact on economic growth, while carbon emission hinders growth. The results also reveal that economic growth, non-clean energy consumption, and interaction between trade openness and non-clean energy consumption have a driving effect on carbon dioxide emission; however, clean energy consumption is found to reduce carbon emission. In addition, the analysis confirms the existence of the inverted U-shaped environmental Kuznets curve and pollution haven hypothesis in the panel of PIMC economies. Finally, there is a one-way causality from non-clean energy consumption to economic growth, but no such causation exists between clean energy consumption and economic growth. The objective of sustained economic growth with a safe environment may be achieved by encouraging clean energy consumption in the PIMC economies.
Highlights
Energy is an important spark of the world economy, a key functional factor for any country's economic growth, and a basic input for almost all goods and services in the new world (Ramezani et al, 2020; Stern, 2019; Ayres et al, 2013)
This study further explored the adverse effects of clean energy on carbon dioxide emissions and the stimulus effect of clean energy on economic growth
The results show that clean energy and haze pollution have significant adverse effects on economic growth
Summary
Energy is an important spark of the world economy, a key functional factor for any country's economic growth, and a basic input for almost all goods and services in the new world (Ramezani et al, 2020; Stern, 2019; Ayres et al, 2013). In advanced, emerging, and developing economies, the widespread use of various energy sources increases carbon dioxide (CO2). Pakistan, India, and Malaysia (PIMC) are the panel of Asian developing economies, mainly focussed in this study. This is because the high dependence of these countries on non-renewable energy is the main driving force for higher growth, but it leads to carbon dioxide emissions and environmental degradation (Khan, Khan & Rehan, 2020). In 2019, the PIMC economies accounted for 17.81% of global
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