From Fossil Fuels to Green Finance: Economic Indicators and Circular Economy Transitions in India’s Renewable Energy Landscape

Previous studies have explored the economic and environmental factors that affect the growth of renewable energy, suggesting that crude oil prices, coal prices, and foreign investment are crucial for promoting green energy within the circular economy. This model promotes sustainability, resource efficiency, waste reduction, and the continuous use of energy, which fits hand in hand with the goals of renewable energy development. The relationship between carbon emissions and investments in renewable energy has been both positive and negative results according to studies based on their research in i.e. a positive relationship due to government conduct of low carbon footprints and circular economies in their research. Moreover, the effects of per capita income on the growth in the field of green energy is often oriented towards higher economic resources to promote sustainable development on this path strengthening the principles/circular economy. Broader application of these insights, this study investigates certain determinants of growth in the Green Energy Index of India and analyzes various economic and environmental factors over the past five years. By means of stationarity test, correlation analysis and multiple regression techniques, the relationship between these variables is studied. It helps them focus on specific obstacles and drive forward the transition to renewable energy, an essential element of the circular economy, which the study finds is positively impacted by per capita income and crude oil prices, clear evidence of the interplay between economic resources and investments in renewables. Nonetheless, the index demonstrates a negative co-relationship with coal prices, indicating the negative effect of being reliant on coal on the advance of green energy. The Green Energy Index was also found to have no meaningful relationship with foreign capital and carbon emission. The paper concludes by emphasizing that Green energy index of India may significantly improve through increased investments in energy generation through renewable resources in circular economy context. It recommends that further study should consider a longer time series analysis and more companies in this field to provide a clearer picture of the relationship between these variables and green energy expansion.