NATURAL RESOURCES DEPLETION, RENEWABLE ENERGY CONSUMPTION AND ENVIRONMENTAL DEGRADATION: A COMPARATIVE ANALYSIS OF DEVELOPED AND DEVELOPING WORLD

Amjad Ali,Marc Audi,Yannick Roussel

doi:10.32479/ijeep.11008

Abstract

This article investigates the impact of renewable energy consumption and natural resource depletion on environmental degradation from 1990 to 2014. The analysis of this study is distributed into three parts, developing country analysis, developed country analysis and complete sample analysis. An insignificant relation has found between natural resource depletion and environmental degradation in the case of complete sample analysis and developing country analysis, but vica-versa in developed countries. Fossil fuel energy consumption has a positive and significant impact on environmental degradation in developing countries. Renewable energy consumption has negative impact on environmental degradation in the case of complete sample analysis and developed country analysis, but visa-versa in developing countries. Economic growth positively and significantly effecting environmental degradation in all the three cases, this mean for higher economic growth we have to bear some environmental degradation. But it is the need of the hour that we should find some threshold between economic growth and pollutant emissions, so that a healthy environment can be safe for coming generations. So, for a healthy environment, fossil fuel consumption should be reduced and consumption of renewable energy with merchandised trade and urbanization can be encouraged.

Highlights

The burning of biomass and combustion of fossil fuels is attached to human activities, generate greenhouse gasses that disturb the global climate and atmosphere
Our results show that 1% increase in economic growth increases environmental degradation by (0.027885)
Our results show that 1% increase in economic growth, (0.020619) percent increase has been occurred in environmental degradation in the case of developing countries

Summary

INTRODUCTION

The burning of biomass and combustion of fossil fuels is attached to human activities, generate greenhouse gasses that disturb the global climate and atmosphere. Pigou (1932) and Coase (1960) mention that over use of environmental goods leads to potential environmental externalities and if imbalance is severe, a solid public policy is required to correct for future generations It is private ownership and free market forces which increase the negative gap between economic growth and environmental depletion (Hotelling, 1931). More than 60% population of the world is living in developing countries and these countries have higher poverty, unemployment rate, income inequality and low national output as well These socioeconomic targets can be achieved with the help of economic activities and energy consumption is the main driving forces of all types of economic activities. The limited supply of fossil fuel energy consumption with limited use of renewable energy consumption create environmental pollution and the growing concern about global warming, attract the interest of policy makers towards environmental degradation (Figure 2)

LITERATURE REVIEW

THE MODEL

Findings

OF RESULTS

CONCLUSIONS AND POLICY