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A Novel Investigation to Explore the Impact of Renewable Energy, Urbanization, and Trade on Carbon Emission in Bhutan

Author

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  • Abdul Rehman

    (College of Economics and Management, Henan Agricultural University, Zhengzhou 450002, China)

  • Mohammad Mahtab Alam

    (Department of Basic Medical Sciences, College of Applied Medical Science, King Khalid University, Abha 62561, Saudi Arabia)

  • Magdalena Radulescu

    (Department of Finance, Accounting, Economics, University of Pitesti, Str. Targu din Vale, No. 1, 110040 Pitesti, Arges, Romania
    Institute of Doctoral and Post-Doctoral Studies, University Lucian Blaga of Sibiu, Bd, Victoriei, no. 10, 550024 Sibiu, Romania)

  • Rafael Alvarado

    (Esai Business School, Universidad Espíritu Santo, Samborondon 091650, Ecuador)

  • Daniela Mihai

    (Department of Management and Business Administration, University of Pitesti, Str. Targu din Vale, No. 1, 110040 Pitesti, Arges, Romania)

  • Madalina Brutu

    (Department of Management and Business Administration, University of Pitesti, Str. Targu din Vale, No. 1, 110040 Pitesti, Arges, Romania)

Abstract

The present study explores the impact of renewable energy usage, economic progress, urbanization, and trade on carbon emissions in Bhutan. The stationarity among the variables was tested by employing the two unit root tests by taking the annual data series variables from 1982–2020. A symmetric (ARDL) technique was utilized to analyze the associations among variables with short- and long-run estimations. In addition, the cointegration regression method using FMOLS and DOLS was used in this investigation to discover the robustness of the study variables. Findings showed that via long-run assessment the variables renewable energy consumption, urbanization, and trade have adverse connections with CO 2 emission, while the variable economic progress shows a constructive linkage with carbon emission. However, the short-run assessment showed that the variable economic growth has a positive impact on carbon emissions. Further, the variables renewable energy consumption, urbanization, and trade have an adverse relation to carbon emissions in Bhutan. The consequences of both FMOLS and DOLS also mean that the variable renewable energy usage, urbanization, and trade have an adverse influence on carbon emission, while economic growth has a constructive linkage with CO 2 emission. Greenhouse gas emissions are undeniably an increasing global issue. This problem can only be handled by prudent legislation and funding. Despite having fewer greenhouse gas emissions than industrialized economies, Bhutan’s government needs to develop new rules to address this issue in order to ensure environmental sustainability and economic growth.

Suggested Citation

  • Abdul Rehman & Mohammad Mahtab Alam & Magdalena Radulescu & Rafael Alvarado & Daniela Mihai & Madalina Brutu, 2022. "A Novel Investigation to Explore the Impact of Renewable Energy, Urbanization, and Trade on Carbon Emission in Bhutan," Energies, MDPI, vol. 15(9), pages 1-17, April.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:9:p:2984-:d:797050
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