Analyzing Renewable and Nonrenewable Energy Sources for Environmental Quality: Dynamic Investigation in Developing Countries

Itbar Khan,Lei Han,Hayat Khan,Le Thi Kim Oanh,Mojtaba Nasiri

doi:10.1155/2021/3399049

Abstract

Most of developing countries are facing environmental degradation challenges as these countries use energy from fossil fuels to enhance economic activities and that leads to environmental degradation. The use of renewable energy is required to mitigate environmental degradation; however, developing countries may not yet have reached the desired level to acquire renewable energy. It is important for developing countries to make polices to shift from nonrenewable energy to renewable energy use to protect environmental quality. In this regard, the importance of different energy sources and financial development in enhancing environmental quality in 21 developing countries is examined from 1970 to 2018. The study employed dynamic estimator, and the results indicate that the sources of renewable energy enhance environmental quality as compared to nonrenewable energy and its sources. Financial development also lowers environmental quality in our results. The study recommends reducing carbon emissions by reducing the use of fossil fuel energy and acquiring new technologies, attracting foreign investors in clean energy that provide clean technologies for green production, and investing in renewable energy sources to evade nonrenewable energy. Policy makers should adopt environmentally-friendly strategies and equipment to protect environmental quality, while striving for achieving economic growth.

Highlights

Developing countries are trying to raise the level of economic growth and development by establishing policies which are helpful to increase the investment level
Since our research sample is developing country rather than a developed country, it is still possible to use coal as an energy source, which is more harmful to the environment, but compared to using coal, using natural gas may be better because natural gas consumption may not be as bad as coal. e economic growth of these countries may not be conducive to the financing of renewable energy projects to obtain renewable energy, so it can be suggested that natural gas may be better than coal consumption, but in the future, these countries should strive to promote economic growth and invest in renewable energy to avoid the use nonrenewable energy sources such as coal and natural gas
It is found in all models that financial development is positive, which indicates that financial development will increase carbon emissions. e results of various indicators are summarized in Table 8, showing the positive and negative impacts of indicators on carbon emissions

Summary

Introduction

Developing countries are trying to raise the level of economic growth and development by establishing policies which are helpful to increase the investment level. Energy consumption plays an important role to enhance economic growth by facilitating production with capital and labor Both financial development and energy consumption promote production levels and economic growth, but they increase carbon emissions and cause environmental degradation [2]. E use of energy is important to promote economic activity, and it creates environmental-related problems, such as the depletion of natural resources and carbon emissions In this context, developing countries urgently need to promote economic growth. E reason of environmental degradation faced by developing countries is the reason of energy from fossil fuels being used to increase economic activities Increasing these activities for the purpose to enhance economic growth in developing countries is important; the quality of environment needs to be protected. Wolde-Rufael and Menyah [3] argue

Methods

Results

Conclusion