Energy Consumption, Economic Growth and Environmental Quality in South Asian Developing Countries: A Panel Data Analysis

Abstract

In coming future, developing economies expanding than advance economies. In this study, we attempted to investigate the effects of energy consumption and economic development on the environmental quality in developing south Asian nations. The time period 2000–2020 and used PMG-ARDL. According to the research, economic expansion and energy use have favorable effects on the environment. Further, the findings show that all variables in Asian nations indicate cross-sectional dependence (CSD). The results of the study suggest that practical implications must be employed in order to attract people towards the use of renewable energies. According to the long-run results, NONRNW, GDP, and FDI cause harm to the environment by increasing CO2. On the other hand, RNW decreases CO2, but it is insignificant while other variables are significant. The outcomes of the CD methods explain the presence of CSD, and the Pedroni Panel Cointegration Test results reveal long-run cointegration among variables. Practical implications must be employed in order to attract the masses to use renewable energy sources more. Subsidies and incentives must be given to people for using renewable energy, and it should be made cheaply available.