IDEAS home Printed from https://ideas.repec.org/a/wly/sustdv/v33y2025i5p6885-6900.html

Nonlinear Effects of Energy Shortages on Sustainable Development and Economic Growth: Evidence From South Asian Countries

Author

Listed:
  • Muhammad Asif Amjad
  • Tayyaba Rani
  • Feng Wang

Abstract

Reliable energy resources are indispensable for meeting growing human demand, and ensuring their sustainable use remains a critical global challenge in achieving the Sustainable Development Goals. This study delves into the linkage of energy shortage with key development indicators, including economic growth, human development index, and sustainable development index in the South Asian region. The empirical results are estimated through panel quantile regression and method of movement quantile regression approaches. The study found a U‐shaped relationship, indicating that initial electrification access has a limited impact on development, but after surpassing a certain threshold, further improvement of electrification access greatly accelerates social, environmental, and economic development. These results suggest the non‐existence of energy shortage in the South Asian region, as most of the population has already achieved electricity access. Furthermore, trade openness increases development, while urbanization and gross capital formation present mixed results. The findings suggest a need for policy to promote sustainable energy practices through renewable adoption, energy efficiency, and equitable energy distribution rather than mere access expansion. This research offers valuable insights for policymakers to formulate energy policies that support the region's balance of growth and environmental sustainability.

Suggested Citation

  • Muhammad Asif Amjad & Tayyaba Rani & Feng Wang, 2025. "Nonlinear Effects of Energy Shortages on Sustainable Development and Economic Growth: Evidence From South Asian Countries," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(5), pages 6885-6900, October.
    • Handle: RePEc:wly:sustdv:v:33:y:2025:i:5:p:6885-6900
    DOI: 10.1002/sd.3492
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/sd.3492
    Download Restriction: no
    File URL: https://libkey.io/10.1002/sd.3492?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sabyasachi Tripathi, 2021. "How does urbanization affect the human development index? A cross-country analysis," Asia-Pacific Journal of Regional Science, Springer, vol. 5(3), pages 1053-1080, October.
    2. Qin, Jiangnan & Li, Wenjing & Zhang, Junbiao, 2024. "How can energy poverty affect farmers’ health? Evidence from mountainous areas in China," Energy, Elsevier, vol. 290(C).
    3. Ndubuisi, Gideon & Denis, Yuni & Urom, Christian & Abid, Ilyes, 2023. "Too big to be ignored: How energy poverty undermines productive efficiency," Energy Policy, Elsevier, vol. 181(C).
    4. T. S. Breusch & A. R. Pagan, 1980. "The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(1), pages 239-253.
    5. Olawale Daniel Akinyele, 2024. "Assessing the determinants of human development in OECD economies: evidence from labor productivity and investment decisions," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 51(8), pages 1664-1676, May.
    6. M. Hashem Pesaran, 2021. "General diagnostic tests for cross-sectional dependence in panels," Empirical Economics, Springer, vol. 60(1), pages 13-50, January.
    7. Lee, Chi-Chuan & Li, Mingyue & Li, Xinghao & Song, Hepeng, 2025. "More green digital finance with less energy poverty? The key role of climate risk," Energy Economics, Elsevier, vol. 141(C).
    8. Shafqut Ullah & Muhammad Khan & Seong-Min Yoon, 2021. "Measuring Energy Poverty and Its Impact on Economic Growth in Pakistan," Sustainability, MDPI, vol. 13(19), pages 1-19, October.
    9. Muhammad Umair & Waqar Ahmad & Babar Hussain & Valentin Marian Antohi & Costinela Fortea & Monica Laura Zlati, 2024. "The Role of Labor Force, Physical Capital, and Energy Consumption in Shaping Agricultural and Industrial Output in Pakistan," Sustainability, MDPI, vol. 16(17), pages 1-26, August.
    10. Qiang Wang & Lili Wang & Rongrong Li, 2024. "Trade openness helps move towards carbon neutrality—Insight from 114 countries," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(1), pages 1081-1095, February.
    11. Nchofoung, Tii N. & Asongu, Simplice A., 2022. "ICT for sustainable development: Global comparative evidence of globalisation thresholds," Telecommunications Policy, Elsevier, vol. 46(5).
    12. Xinyu Wang & Yinsu Wang & Kui Zhou, 2024. "The Impact of Energy Poverty Alleviation on Carbon Emissions in Countries along the Belt and Road Initiative," Sustainability, MDPI, vol. 16(11), pages 1-21, May.
    13. Lee, Chien-Chiang & Yuan, Zihao, 2024. "Impact of energy poverty on public health: A non-linear study from an international perspective," World Development, Elsevier, vol. 174(C).
    14. Abbas, Jaffar & Balsalobre-Lorente, Daniel & Amjid, Muhammad Asif & Al-Sulaiti, Khalid & Al-Sulaiti, Ibrahim & Aldereai, Osama, 2024. "Financial innovation and digitalization promote business growth: The interplay of green technology innovation, product market competition and firm performance," Innovation and Green Development, Elsevier, vol. 3(1).
    15. Tanveer Ahmed Naveed & David Gordon, 2024. "The Construction of a Human Development Index at the Household Level and the Measurement of Human Development Disparities in Punjab (Pakistan)," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 25(3), pages 473-498, July.
    16. Pesaran, M. Hashem & Vanessa Smith, L. & Yamagata, Takashi, 2013. "Panel unit root tests in the presence of a multifactor error structure," Journal of Econometrics, Elsevier, vol. 175(2), pages 94-115.
    17. Raza, Muhammad Yousaf & Lin, Boqiang, 2024. "Energy transition, carbon trade and sustainable electricity generation in Pakistan," Applied Energy, Elsevier, vol. 372(C).
    18. Hashem Pesaran, M. & Yamagata, Takashi, 2008. "Testing slope homogeneity in large panels," Journal of Econometrics, Elsevier, vol. 142(1), pages 50-93, January.
    19. Helmi Hamdi & Abdelaziz Hakimi, 2022. "Trade Openness, Foreign Direct Investment, and Human Development: A Panel Cointegration Analysis for MENA Countries," The International Trade Journal, Taylor & Francis Journals, vol. 36(3), pages 219-238, May.
    20. Pham, Thi Ha An & Lin, Chia-Yang & Moslehpour, Massoud & Vo, Thi Thuy Van & Nguyen, Hai-Tuan & Nguyen, Tran Thai Ha, 2024. "What role financial development and resource-curse situation play in inclusive growth of Asian countries," Resources Policy, Elsevier, vol. 88(C).
    21. Mbiankeu Nguea, Stéphane, 2024. "Uncovering the linkage between sustainable development goals for access to electricity and access to safely managed drinking water and sanitation services," Social Science & Medicine, Elsevier, vol. 345(C).
    22. Nam, Hyun-Jung & Ryu, Doojin, 2024. "Does trade openness promote economic growth in developing countries?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 93(C).
    23. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    24. Qiang Wang & Tingting Sun & Rongrong Li, 2025. "Does Artificial Intelligence (AI) enhance green economy efficiency? The role of green finance, trade openness, and R&D investment," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-22, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aslam, Bilal & Zhantian, Bi & Amjad, Muhammad Asif & Zhang, Guitao, 2025. "Decarbonizing transport: EV production versus conventional vehicles," Transport Policy, Elsevier, vol. 174(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hussein Moghaddam & Robert M. Kunst, 2023. "The Role of Natural Gas in Mitigating Greenhouse Gas Emissions: The Environmental Kuznets Curve Hypothesis for Major Gas-Producing Countries," Sustainability, MDPI, vol. 15(5), pages 1-20, February.
    2. Ma, Yechi & Chen, Zhiguo & Shinwari, Riazullah & Khan, Zeeshan, 2021. "Financialization, globalization, and Dutch disease: Is Dutch disease exist for resources rich countries?," Resources Policy, Elsevier, vol. 72(C).
    3. Muhammad Sadiq & Syed Tauseef Hassan & Irfan Khan & Mohammad Mafizur Rahman, 2024. "Policy uncertainty, renewable energy, corruption and CO2 emissions nexus in BRICS-1 countries: a panel CS-ARDL approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(8), pages 21595-21621, August.
    4. Shreya Pal, 2024. "The International Capital Flows and Domestic Savings–domestic Investment Nexus: A Comparative Evidence Between Heterogeneous Developing Regions," South Asian Journal of Macroeconomics and Public Finance, , vol. 13(2), pages 169-212, December.
    5. Naib Alakbarov & Yılmaz Bayar, 2018. "Democratization and Economic Growth in Emerging Market Economies," Journal of Finance Letters (Maliye ve Finans Yazıları), Maliye ve Finans Yazıları Yayıncılık Ltd. Şti., vol. 33(109), pages 165-180, April.
    6. Shazia Shaheen Shaikh & Nabila Amin & Muhammad Salman Shabbir & Huaming Song, 2025. "Going Green in ASEAN: Assessing the Role of Eco‐Innovation, Green Energy, Industrialization, and Environmental Taxes in Achieving Carbon Neutrality," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(3), pages 3596-3614, June.
    7. Sohail, Muhammad Tayyab & Ullah, Sana & Ozturk, Ilhan & Sohail, Sidra, 2025. "Energy justice, digital infrastructure, and sustainable development: A global analysis," Energy, Elsevier, vol. 319(C).
    8. Huang, Lingyun & Zou, Yanjun, 2020. "How to promote energy transition in China: From the perspectives of interregional relocation and environmental regulation," Energy Economics, Elsevier, vol. 92(C).
    9. Dong, Kangyin & Sun, Renjin & Hochman, Gal & Li, Hui, 2018. "Energy intensity and energy conservation potential in China: A regional comparison perspective," Energy, Elsevier, vol. 155(C), pages 782-795.
    10. Emre Kilic & Ersin Yavuz & Sevket Pazarci & Alican Umut, 2021. "Analysis of the Effect of Energy Consumption on Current Account Deficit Using Panel Data: Evidence from the Organization of the Black Sea Economic Cooperation," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 8(2), pages 277-291, July.
    11. Tsangyao Chang & Chien-Chiang Lee & Hsiao-Ping Chu, 2015. "Revisiting the Defense-Growth nexus in European countries," Defence and Peace Economics, Taylor & Francis Journals, vol. 26(3), pages 341-356, June.
    12. Philémon Votsoma & Votsoma Djekna & Itchoko Motande Mondjeli Mwa Ndjokou, 2024. "Trade openness and economic growth in the Central African Economic and Monetary Community: Is a review of the empirical evidence worthwhile? [Ouverture commerciale et croissance économique dans la Communauté économique et monétaire des États de l’," Post-Print hal-04560475, HAL.
    13. Amsalu K. Addis, 2026. "The impact of renewable energy on CO2 emissions in Middle Eastern and BRICS economies," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 13(1), pages 1-20, December.
    14. Haider Mahmood & Ateeq ur Rehman Irshad & Muhammad Tanveer, 2024. "Do innovation and renewable energy transition play their role in environmental sustainability in Western Europe?," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-9, December.
    15. Hossain, Mohammad Razib & Rao, Amar & Sharma, Gagan Deep & Dev, Dhairya & Kharbanda, Aeshna, 2024. "Empowering energy transition: Green innovation, digital finance, and the path to sustainable prosperity through green finance initiatives," Energy Economics, Elsevier, vol. 136(C).
    16. Yilmaz Bayar & Djula Borozan & Marius Dan Gavriletea, 2021. "Banking sector stability and economic growth in post‐transition European Union countries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(1), pages 949-961, January.
    17. Nurullah Altıntaş & Furkan Açıkgöz & Muhammet Yeniyurt, 2025. "Investigating the LCC hypothesis in the middle East, North Africa, and Turkey (Menat): evidence from second-generation panel techniques," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(3), pages 7681-7700, March.
    18. Liu, Biao & Lyu, Yifei, 2024. "Economic corruption, green recovery, and mineral trade relationships in emerging economies," Resources Policy, Elsevier, vol. 90(C).
    19. Emre Sakar & Mahmut Unsal Sasmaz & Ahmet Ozen, 2025. "The Nexus Between Tax Revenue, Economic Policy Uncertainty, and Economic Growth: Evidence from G7 Economies," Sustainability, MDPI, vol. 17(15), pages 1-34, July.
    20. Mahmut Unsal Sasmaz & Aysun Karamıklı & Ulas Akkucuk, 2021. "The relationship between renewable energy use and health expenditures in EU countries," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(7), pages 1129-1139, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:sustdv:v:33:y:2025:i:5:p:6885-6900. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-1719 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.