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Investigating Growth-Energy-Emissions Trilemma in South Asia

Author

Listed:
  • Bosede Ngozi Adeleye

    (Department of Economics and Development Studies, Covenant University, Nigeria)

  • Darlington Akam

    (Department of Economics, University of Lagos, Nigeria;)

  • Nasiru Inuwa

    (Department of Economics, Gombe State University, Nigeria;)

  • Muftau Olarinde

    (Department of Economics, Uthman Dan Fodio University, Nigeria)

  • Victoria Okafor

    (Department of Economics and Development Studies, Covenant University, Nigeria)

  • Ifeoluwa Ogunrinola

    (Department of Economics and Development Studies, Covenant University, Nigeria)

  • Paul Adekola

    (Department of Economics and Development Studies, Covenant University, Nigeria)

Abstract

This paper situates the 2030 United Nations Sustainable Development Goals (SDGs) 7, 8, and 13 to investigate the growth-energy-emissions trilemma. It uniquely contributes to the discourse by using carbon emissions per capita (emissions), GDP per capita (economic growth), energy use per capita (nonrenewable energy) and renewable energy from seven South Asian countries covering 1990 to 2019 to determine the effect of economic growth and energy use on emissions and if its interaction with either energy variant enhances or dims the effect of energy on emissions. Consistent findings from panel-corrected standard errors (PCSE), feasible generalized least squares (FGLS) and bootstrapping ordinary least squares (BOLS) reveal that: (1) Economic growth intensifies emissions, (2) renewable energy exhibit emissions-reducing properties; (3) nonrenewable energy intensifies emissions, (4) economic growth sustains the emissions-reducing impact of renewable energy; and (5) economic growth diminishes the harmful effect of nonrenewable energy. Given these, we submit that the interaction of economic growth enables the good effect of renewable energy. At the same time, it reduces the bad effect nonrenewable energy on carbon emissions. These outcomes engender a new line of argument that the extent of economic growth cuts carbon emissions level. Therefore, economic growth is an essential determinant of carbon emissions. Policy implications discussed.

Suggested Citation

  • Bosede Ngozi Adeleye & Darlington Akam & Nasiru Inuwa & Muftau Olarinde & Victoria Okafor & Ifeoluwa Ogunrinola & Paul Adekola, 2021. "Investigating Growth-Energy-Emissions Trilemma in South Asia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 112-120.
    • Handle: RePEc:eco:journ2:2021-05-15
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    Cited by:

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    2. Hammed Oluwaseyi Musibau & Abdulrasheed Zakari & Farhad Taghizadeh-Hesary, 2024. "Exploring the Fiscal policy—income inequality relationship with Bayesian model averaging analysis," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-14, April.
    3. Zakari, Abdulrasheed & Khan, Irfan & Tawiah, Vincent & Alvarado, Rafael & Li, Guo, 2022. "The production and consumption of oil in Africa: The environmental implications," Resources Policy, Elsevier, vol. 78(C).
    4. Bosede Ngozi Adeleye & Romanus Osabohien & Adedoyin Isola Lawal & Tyrone De Alwis, 2021. "Energy use and the role of per capita income on carbon emissions in African countries," PLOS ONE, Public Library of Science, vol. 16(11), pages 1-17, November.

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    More about this item

    Keywords

    carbon emissions; economic growth; nonrenewable energy; renewable energy; South Asia;
    All these keywords.

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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