Harnessing Green Investments for Sustainable Prosperity and the Role of Renewable Energy in Driving Economic Growth and Development in South Asia
DOI:
https://doi.org/10.54536/ajee.v4i1.4050Keywords:
CO₂ Emissions Reduction, Economic Growth, Green Job Growth, Renewable Energy, Sustainable DevelopmentAbstract
This study examines the impact of renewable energy investments on economic growth in South Asia, a region grappling with rapid economic expansion and environmental degradation due to heavy reliance on fossil fuels. This paper employs panel data from 1998 to 2022 and 15 emerging countries to examine the nexus between RE consumption, economic growth, CO2 emissions, and energy access using GMM and fixed-effects models. These findings suggest that increasing 1% of renewable energy consumption will increase GDP by 0.072%, while increasing 1% of CO2 emissions will reduce GDP by 0.3%. Besides, renewable energy investments are expected to contribute to the generation of 2.98 million green job opportunities by 2035. The study shows that renewable energy can decrease emissions, increase energy security, and create jobs. Nevertheless, there are limitations like capital-intensive requirements and a lack of proper infrastructure and policies that have to be overcome. Therefore, the study supports the proposition that the sustainable development of renewable energy in South Asia depends on considerable policy intervention, technological improvement, and investment in infrastructure.
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