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Impact of renewable and non-renewable electricity generation on economic growth in India: an application of linear and nonlinear models

Author

Listed:
  • Mohd Arshad Ansari

    (GITAM Deemed University)

  • Pushp Kumar

    (Indian Institute of Technology Bhubaneswar)

  • Muhammed Ashiq Villanthenkodath

    (Indian Institute of Management Bodh Gaya (IIM Bodh Gaya))

Abstract

The development of renewable energy sources for electricity generation is necessary for sustainable development in India. Thus, the present study examines the effects of renewable and non-renewable electricity generation on economic growth in India during 1991–2019. In this regard, the robust time series econometric tools like autoregressive distributed lag (ARDL) and non-linear autoregressive distributed lag (NARDL) models are applied to the formulated economic growth function in the presence of both renewable and non-renewable electricity generation as key determinants. Moreover, the outcome of ARDL and NARDL models confirms the long-run relationship between the sample variables. Further, the long-run result shows that economic growth is positively affected by renewable and non-renewable electricity generation, according to the ARDL model. At the same time, the finding from NARDL indicates that a negative change in non-renewable electricity generation leads to an increase in economic growth in India.

Suggested Citation

  • Mohd Arshad Ansari & Pushp Kumar & Muhammed Ashiq Villanthenkodath, 2023. "Impact of renewable and non-renewable electricity generation on economic growth in India: an application of linear and nonlinear models," Journal of Regulatory Economics, Springer, vol. 63(3), pages 138-158, June.
    • Handle: RePEc:kap:regeco:v:63:y:2023:i:3:d:10.1007_s11149-023-09461-2
    DOI: 10.1007/s11149-023-09461-2
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    More about this item

    Keywords

    Economics growth; Electricity sector; Sustainable policies; NARDL;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation

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