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Assessing the long-term impact of macroeconomic and environment dynamics: Does sustainable energy production shape the environmental landscape of south ASIAN nations?

Author

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  • Umra Waris

    (Data Analyst, Department of Quality Enhancement Cell, Institute for Art and Culture, Lahore, Pakistan)

  • Pallavi Sri

    (HKBK degree College, Bangalore, Karnataka, India)

Abstract

This study delves into the intricate interconnections among the financial sector, macroeconomic dynamics, and the advancement of sustainable energy production in South Asia. Utilizing data from 1987 to 2022 in Bangladesh, India, Pakistan, and Sri Lanka, the research employs the Structural Vector Autoregressive (SVAR) method to analyze financial market responses. The findings reveal nuanced insights into the complex relationship between economic and environmental factors, fostering a comprehensive understanding of the region's intricate nexus between financial markets and sustainable energy initiatives. In the Economic Growth model, the negative coefficient for CO2 emissions underscores environmental concerns, indicating an inverse relationship with economic growth. Conversely, positive coefficients for non-fossil energy production, Gross Fixed Capital Formation, stock exchange value, and domestic credit emphasize their positive impact on economic growth. A positive GDP coefficient in the CO2 emission model signifies heightened carbon emissions with economic growth, while a negative coefficient for non-fossil energy production suggests potential environmental benefits. The nearly unitary positive coefficient for Gross Fixed Capital Formation highlights its significant role in driving carbon emissions. The Non-Fossil Energy Production model reveals an inverse relationship between GDP and clean energy, suggesting a potential reliance on fossil fuels during economic growth. Positive coefficients for CO2 emissions, Gross Fixed Capital Formation, stock exchange value, and domestic credit highlight factors influencing non-fossil energy production. Long-run stable coefficients affirm variable significance, while a negative error correction term suggests convergence in developing countries. These models offer nuanced insights into the intricate relationships among economic, environmental, and energy variables, guiding sustainable development policies in South Asia.

Suggested Citation

  • Umra Waris & Pallavi Sri, 2024. "Assessing the long-term impact of macroeconomic and environment dynamics: Does sustainable energy production shape the environmental landscape of south ASIAN nations?," Energy Technologies and Environment, Anser Press, vol. 2(1), pages 14-31, March.
    • Handle: RePEc:bba:j00006:v:2:y:2024:i:1:p:14-31:d:319
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    3. Hasan, Mohammad Maruf & Li, Lanrui, 2025. "Do supply chain and digitalization Foster China's advancement in green development? An evidence from wavelet quantile regression and wavelet quantile correlation analysis," Energy Economics, Elsevier, vol. 142(C).
    4. Wen, Chen & Xing, Yuhang & Wang, Tao & Liao, Sheng & Gao, Ke, 2025. "How do green supply chain management and renewable energy consumption influence carbon emissions in China and India? A comparative analysis," Energy Economics, Elsevier, vol. 143(C).
    5. Waris, Umra & Cui, Lixin & Abbas, Shujaat & Shoaib, Muhammad, 2025. "How has climate change been affected by electricity digitalization, supply chain digitalization, and green technologies? Building a path to environmentally sustainable development in E7 nations," Energy Economics, Elsevier, vol. 145(C).
    6. Li, Zhouzhi & Liu, Jiaguo, 2025. "Impact of supply chain digitalization, business enterprise R&D expenditure and government budget allocations for R&D: A roadmap towards carbon neutrality," Energy Economics, Elsevier, vol. 141(C).
    7. Liu, Xiaoxi & Zhan, Yunqiu & Si, Dingwen & Wang, Zhen, 2025. "Navigating renewable technological innovations and green supply chain management: Crafting a novel framework for boosting ecological quality in China," Energy Economics, Elsevier, vol. 142(C).
    8. Chen, Jingping & Zhao, Chunzi & Liu, Shuang & Li, Yuchen, 2025. "How do digitalizing ICT and supply chain globalization affect renewable energy in ASEAN nations? The mediating role of sustainable environmental practices using the MMQR and PCSEs model," Energy Economics, Elsevier, vol. 142(C).
    9. Du, Xu & Fang, Shuanxi, 2025. "Does the lack of energy resilience a serious problem at the forefront of policy analysts? Role of supply chain digitalization and environmental law in OECD countries," Energy Economics, Elsevier, vol. 141(C).
    10. Han, Qiujie & Wang, Fei & Wang, Yushi & Guo, Feng, 2025. "How supply chain and digitalization are significant contributors to international trade? The role of renewable and energy intensity in global trade powerhouses' economies," Energy Economics, Elsevier, vol. 145(C).
    11. Zhang, Mindan & Ma, Xiang & Mai, Shunhao & Qing, Lingli, 2025. "Drivers of supply chain, environmental innovation, and digital population: The role of inflation and renewable energy on GHG emission in Indonesia," Energy Economics, Elsevier, vol. 145(C).
    12. Cai, Helen Huifen & Yuan, Qiong & Tang, Shirley & Nguyen, Quang & Dai, Jie & Zheng, Wenxiu, 2025. "The moderating role of green innovation and ecofriendly goods in growth-greenhouse gas Nexus: A new policy dimension," Energy Economics, Elsevier, vol. 142(C).
    13. Wang, Lingkang & Yang, Yiqu & Yang, Dongping & Zhou, Yaying, 2024. "Role of supply chain disruptions and digitalization on renewable energy innovation: Evidence from G7 nations," Energy Economics, Elsevier, vol. 140(C).
    14. Huang, Shuai & Tan, Huizhu, 2025. "Evaluating the effects of green supply chain, digital technologies, and energy prices on renewable energy innovations: A way forward for an emerging economy," Energy Economics, Elsevier, vol. 141(C).

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