Sustainable pathways for attaining net zero emissions in selected South Asian countries: role of green energy market and pricing

Abstract

Due to the ongoing challenges posed by climate change and environmental degradation, developing nations are pursuing initiatives to mitigate carbon emissions at net zero and achieve sustainability objectives. To attain these objectives, it is necessary to shift from conventional energy sources to green energy sources. This research paper examines the dynamic role of the green energy market and green energy pricing in sustainable pathways for attaining net-zero emissions in South Asian countries including India, Malaysia, Pakistan, and Bangladesh. The study utilizes the dynamic Autoregressive Distributed Lag simulations (DARDLS) technique and panel data spanning from 1990 to 2018. The findings reveal a positive correlation between the green energy market and sustainable development in the short run, with reverse effects in the long run. Furthermore, there is an inverse relationship between green energy prices, net-zero emissions, and sustainable development emissions in the short run, which strengthens over time. Based on the results, the study suggests that South Asia is a region that is especially susceptible to the impacts of climate change. Therefore, the governments of these countries should consider implementing favourable policies to support sustainable development, including providing financial assistance, offering subsidies for green energy technology, reducing tariffs, and establishing strong sustainability frameworks and government regulations.