Renewable energy, institutional stability, environment and economic growth nexus of D-8 countries
By Mahjabeen, S. F. Shah, Sumayya Chughtai, Biagio Simonetti. Energy Strategy Reviews, 2020
189 citations recorded by the source corpus.
Abstract The anthropogenic impact of conventional energy sources encourages the utilization of renewable energy, as it has become a strategic commodity for economic growth. On the other hand, institutional stability is the pre-requisite without which environmental quality cannot be assured and the economy cannot function. However, in recent literature, very little consideration has been given to this important phenomenon. This study is set to analyze the energy-institutional stability-economic growth nexus, as well as the energy-institutional stability-environmental quality nexus, by incorporating the Cobb Douglas production function and the Diet and Rosa environmental function respectively. The sample consists of the D-8 countries and the time period spans 1990 to 2016. To analyze the developed models, Autoregressive Distributive Lag (ARDL), Fully Modified Ordinary Least Square (FMOLS) and Dynamic Ordinary Least Square (DOLS) tests are applied, along with other econometric techniques. The panel ARDL statistics indicate significant cointegration among all variables of both functions, while the FMOLS test reveals that consumption of both nonrenewable and renewable energy has a positive impact on economic growth, as well as on environmental degradation. Further, results indicate that institutional stability is crucial for establishing a nation on a sound footing and protecting environmental quality. Based on these results, the study suggests a blend of both types of energy and a gradual transition toward renewable energy sources, with better implementation of policies and technological advances, to produce, preserve, and transmit renewable energy production.
Subfields: Economics and Econometrics, Pollution, Renewable Energy, Sustainability and the Environment
View Paper: https://www.semanticscholar.org/paper/1646272cead61d9514bf33ae5da44c6760ad8b74
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Citations in the corpus
- Do Environment-Related Policy Instruments and Technologies Facilitate Renewable Energy Generation? Exploring the Contextual Evidence from Developed Economies (2021, methodology): “It was demonstrated that institutional factors determine a decrease of pollution and an increase of economic growth for D-8 countries which use mainly conventional energy and display a low institutional frame, during 1990–2016, by applying Autoregressive Distributed Lag (ARDL), Fully Modified Ordina”
- Asymmetric impact of renewable and non-renewable energy on economic growth in Pakistan: New evidence from a nonlinear analysis (2020, background): “In a recent study, (Shah et al., 2020) examined the role of renewable energy, economic growth and CO2 emissions for the developing countries; their results find that renewable energy has a positive and important relationship with economic progress, whereas CO2 emission had an”