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Impact of Renewable and Non-Renewable Energy on EKC in SAARC Countries: Augmented Mean Group Approach

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  • Liton Chandra Voumik

    (Department of Economics, Noakhali Science and Technology University, Noakhali 3814, Bangladesh)

  • Mohammad Iqbal Hossain

    (Department of Economics, Noakhali Science and Technology University, Noakhali 3814, Bangladesh)

  • Md. Hasanur Rahman

    (Department of Economics, Sheikh Fazilatunnesa Mujib University, Jamalpur 2000, Bangladesh
    Department of Economics, Comilla University, Cumilla 3506, Bangladesh)

  • Raziya Sultana

    (Department of Economics, Noakhali Science and Technology University, Noakhali 3814, Bangladesh)

  • Rahi Dey

    (Department of Economics, Noakhali Science and Technology University, Noakhali 3814, Bangladesh)

  • Miguel Angel Esquivias

    (Faculty of Economics and Business, Universitas Airlangga, Surabaya 60264, Indonesia)

Abstract

This study looks at the short- and long-term effects of fossil fuels, renewable energy, and nuclear energy on CO 2 emissions in the South Asian Association for Regional Cooperation (SAARC) countries from 1982 to 2021. We assess the impacts of SAARC’s current and anticipated use of nuclear, fossil, and alternative energies by testing the environmental Kuznets curve (EKC) hypothesis. The study applied the second-generation unit root test, cointegration test, and the newly introduced AMG technique to handle the presence of cross-sectional dependence. The results indicate that EKC does not hold in SAARC, and a U-shaped quadratic link exists between GDP and environmental pollution. The findings also reveal that the environmental pollution in the SAARC is caused by fossil fuel, whereas using renewable (REN) and nuclear energy can cut long-term pollution. While renewable energy is critical to minimizing environmental deterioration in SAARC, empirical findings also show that more than rising national wealth is needed to meet environmental demands. According to the results of this study, SAARC countries should take the lead in achieving sustainable growth and the efficient use of clean energy.

Suggested Citation

  • Liton Chandra Voumik & Mohammad Iqbal Hossain & Md. Hasanur Rahman & Raziya Sultana & Rahi Dey & Miguel Angel Esquivias, 2023. "Impact of Renewable and Non-Renewable Energy on EKC in SAARC Countries: Augmented Mean Group Approach," Energies, MDPI, vol. 16(6), pages 1-19, March.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:6:p:2789-:d:1100193
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