An impact analysis of macroeconomic factors on South Asia’s renewable energy output
International Journal of Energy Sector Management
ISSN: 1750-6220
Article publication date: 17 May 2023
Issue publication date: 14 March 2024
Abstract
Purpose
South Asia is one of the fastest-growing regions in the world. With its fast economic development, the energy requirement for the region has rapidly grown. As the region relies mainly on nonrenewable energy sources and is suffering from issues like pollution, the high cost of energy imports, depleting foreign reserves, etc. it is searching for those factors that can help enhance the renewable energy generation for the region. Thus, taking these issues into consideration, this paper aims to investigate the impact of macroeconomic factors that can contribute to the enhancement of renewable energy output in South Asia.
Design/methodology/approach
An autoregressive distributed lag methodology has been applied to examine the long-term effects of remittance inflows, literacy rate, energy imports, government expenditures and urban population growth on the renewable energy output of South Asia by using time series data from 1990 to 2021.
Findings
The findings indicated that remittance inflows have a negative and insignificant long-term effect on renewable electricity output. While it was discovered that energy imports, government spending and urban population growth have negative but significant effects on renewable electricity output, literacy rates have positive and significant effects.
Originality/value
Considering the importance of renewable energy, this is one of the few studies that has included critical macroeconomic variables that can affect renewable energy output for the region. The findings contribute to the body of knowledge that a high literacy level is crucial for promoting renewable energy output, while governments and policymakers should prioritize reducing energy imports and ensuring that government expenditures on renewable energy output are properly used. SAARC, the governing body of the region, also benefits from this study while devising the renewable energy output policies for the region.
Keywords
Acknowledgements
Funding: This is to confirm that the author has not received any financial assistance or funding in relation to this research paper.
Declaration of interest statement: The authors whose names are listed immediately below certify that they have NO affiliations with or involvement in any organization or entity with any financial interest (such as honoraria; educational grants; participation in speakers’ bureaus; membership, employment, consultancies, stock ownership or other equity interest; and expert testimony or patent-licensing arrangements) or non-financial interest (such as personal or professional relationships, affiliations, knowledge or beliefs) in the subject matter or materials discussed in this manuscript.
Citation
Khan, I. and Gunwant, D.F. (2024), "An impact analysis of macroeconomic factors on South Asia’s renewable energy output", International Journal of Energy Sector Management, Vol. 18 No. 3, pp. 539-558. https://doi.org/10.1108/IJESM-01-2023-0013
Publisher
:Emerald Publishing Limited
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