Impact of Eco-Efficient Energy on Sustainable Development in South Asia: Empirical Estimations

Abstract

Energy is a prerequisite for all production processes and development. However, eco-efficient, sustainable green energy is essential for sustainable development and green growth. The commitments to produce renewable, clean and green energy have compelled all countries, by the International Agreements and Treaties on energy, environmental protection and sustainable growth. In this background, the present work tried to examine the efforts made by South Asian countries in order to produce eco-efficient, sustainable, clean energy and its interactions with economic development. The present study has used secondary time series data on green energy parameters and parameters related to economic development. The econometric techniques such as stationarity, impact models have been used for examination and analysis of data. It has been found from the analysis that energy intensity has been significantly increased in South Asia along with economic development. However, the production of green energy is not commensurate with its expected rate. Moreover, the shares of both renewable energy and renewable electricity in total energy have been declined over the period of time. This is a negative sign of sustainable development and green growth. Hence, there is a need to restructure the energy policy by South Asian countries according to the needs of sustainable development and green growth. Accordingly, consumption, transmission, process, etc., should be made mandatory to use green energy in their total energy consumption. Pigouvian principle of taxing on increasing social cost and subsidization for increasing social benefits is more appropriate for South Asian policies and strategies for eco efficient green energy and green growth.