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What determines environmental deficit in Asia? Embossing the role of renewable and non-renewable energy utilization

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  • Usman, Muhammad
  • Khalid, Khaizran
  • Mehdi, Muhammad Abuzar

Abstract

Considering the sustainable development goals (SDGs) 7 and 13 of certain access to the reliable, renewable and clean energy technologies and climate action, this study explored the dynamic nexus between financial development, economic growth, non-renewable and renewable energy utilization, trade openness and ecological footprint by utilizing the second-generation panel data approach covering the period from 1990 to 2014 for 20 Asian economies. The inspection of cross-sectional dependency (CSD) tests confirmed the CSD exists across cross-sections. For this intention, the study employed the second-generation panel unit root tests, panel cointegration techniques, augmented mean group (AMG) approach for the estimation of long-run magnitude of the parameters. The empirical findings illustrate that economic growth and non-renewable energy utilization significantly accelerate the environmental deficit, while renewable energy utilization reduces the total environmental damages in the long-run. Furthermore, country-specific outcomes explore the influence of renewable and non-renewable energy utilization on ecological footprint varies in terms of their nature of association, influence in their magnitude and their significance level. Moreover, Dumitrescu and Hurlin (D-H) causality test discovered the feedback hypothesis between ecological footprint and financial development, economic growth, non-renewable and renewable energy utilization and trade openness. Finally, current study expresses the some vital policy implications for Asian countries.

Suggested Citation

  • Usman, Muhammad & Khalid, Khaizran & Mehdi, Muhammad Abuzar, 2021. "What determines environmental deficit in Asia? Embossing the role of renewable and non-renewable energy utilization," Renewable Energy, Elsevier, vol. 168(C), pages 1165-1176.
    • Handle: RePEc:eee:renene:v:168:y:2021:i:c:p:1165-1176
    DOI: 10.1016/j.renene.2021.01.012
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