RENEWABLE AND NON-RENEWABLE ENERGY, ECONOMIC GROWTH AND NATURAL RESOURCES IMPACT ON ENVIRONMENTAL QUALITY: EMPIRICAL EVIDENCE FROM SOUTH AND SOUTHEAST ASIAN COUNTRIES WITH CS-ARDL MODELING

Anabela Botelho,Zeeshan Arshad,Margarita Robaina

doi:10.32479/ijeep.9956

Abstract

This study aims to estimate the effects of economic growth, renewable and non-renewable energy consumption and natural resources on carbon emissions for the period of 1990-2014, in 11 countries, using 3 panels: (i) full countries panel, (ii) South Asian countries and (iii) Southeast Asian countries. For all panels, the long-run elasticities were estimated. The results suggest that non-renewable and renewable energy consumption increase economic development in the three panels. Besides, natural resources impede the economic growth in South Asian and full countries panels while natural resources increase the economic activities in Southeast Asian countries. Non-renewable and economic growth increase CO2 emissions, whereas, renewable energy consumption lessens the carbon emissions. Natural resources also contributed to CO2 emissions in the case of South Asian and full countries panels while improved the environmental quality in the Southeast Asian region. It was also observed that there is cointegration among the variables in all three panels. Policy recommendations can be made, in the sense that renewable energy sources should be preferred to decrease CO2 emissions, and education and corruption should be improved to estimulate the economic growth in the studied areas.Keywords: Renewable Energy, Non-renewable Energy, CO2 Emissions, Natural resources, CS-ARDLJEL Classifications: Q43, Q44, Q56DOI: https://doi.org/10.32479/ijeep.9956

Highlights

From the last few decades climate change has been a very wide spoken phenomenon and exhalation of carbon dioxide (CO2 emissions) is considered its chief source
Cross-sectional Dependence South and Southeast Asian economies such as Pakistan, India, Bangladesh, Thailand, Malaysia, Indonesia are being affected from cross-sectionald ependence (CD), transborder pollutants’ effect and cross-country heterogeneity (Behera and Dash, 2017)
Unit Root Tests Countries have different characteristics and the panels may contain the presence of cross-sectional dependence (CD) which may lead to unreliable and biased results (Park et al, 2018)

Summary

Introduction

From the last few decades climate change has been a very wide spoken phenomenon and exhalation of carbon dioxide (CO2 emissions) is considered its chief source. To meet the demand for the ever increasing population of this planet, labor, capital and other inputs of production (especially energy sources), uplift of human efforts are considered liable for the world’s astonishing economic progress (Owusu and Asumadu-Sarkodie, 2016), which raised the level of carbon emissions. The gaseous emission alarming increased from the figure of 9434.4 million tons in 1961 to a gigantic figure of 34649.4 million tons in year 2011 (IPCC, 2014). British Petroleum agency (2018) report reveals that a uplift of carbon dioxide from 29714.2 million tons in 2009-33444 million tons in 2017 was observed on the globe

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