Open Access Journal Article

Assessing the long-term impact of macroeconomic and environment dynamics: Does sustainable energy production shape the environmental landscape of south ASIAN nations?

by Umra Waris a,* orcid  and  Pallavi Sri b
a
Data Analyst, Department of Quality Enhancement Cell, Institute for Art and Culture, Lahore, Pakistan
b
HKBK degree College, Bangalore, Karnataka, India
*
Author to whom correspondence should be addressed.
ETE  2024, 7; 2(1), 7; https://doi.org/10.58567/ete02010002
Received: 15 December 2023 / Accepted: 17 March 2024 / Published Online: 26 March 2024
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Abstract

This study delves into the intricate interconnections among the financial sector, macroeconomic dynamics, and the advancement of sustainable energy production in South Asia. Utilizing data from 1987 to 2022 in Bangladesh, India, Pakistan, and Sri Lanka, the research employs the Structural Vector Autoregressive (SVAR) method to analyze financial market responses. The findings reveal nuanced insights into the complex relationship between economic and environmental factors, fostering a comprehensive understanding of the region's intricate nexus between financial markets and sustainable energy initiatives. In the Economic Growth model, the negative coefficient for CO2 emissions underscores environmental concerns, indicating an inverse relationship with economic growth. Conversely, positive coefficients for non-fossil energy production, Gross Fixed Capital Formation, stock exchange value, and domestic credit emphasize their positive impact on economic growth. A positive GDP coefficient in the CO2 emission model signifies heightened carbon emissions with economic growth, while a negative coefficient for non-fossil energy production suggests potential environmental benefits. The nearly unitary positive coefficient for Gross Fixed Capital Formation highlights its significant role in driving carbon emissions. The Non-Fossil Energy Production model reveals an inverse relationship between GDP and clean energy, suggesting a potential reliance on fossil fuels during economic growth. Positive coefficients for CO2 emissions, Gross Fixed Capital Formation, stock exchange value, and domestic credit highlight factors influencing non-fossil energy production. Long-run stable coefficients affirm variable significance, while a negative error correction term suggests convergence in developing countries. These models offer nuanced insights into the intricate relationships among economic, environmental, and energy variables, guiding sustainable development policies in South Asia.

Keywords: CO2 emissions; Financial sector; Non-fossil Energy production; Economic growth South Asia;
Copyright: © 2024 by Waris and Sri. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

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ACS Style
Waris, U.; Sri, P. Assessing the long-term impact of macroeconomic and environment dynamics: Does sustainable energy production shape the environmental landscape of south ASIAN nations?. Energy Technologies and Environment, 2024, 2, 7. https://doi.org/10.58567/ete02010002
AMA Style
Waris U, Sri P. Assessing the long-term impact of macroeconomic and environment dynamics: Does sustainable energy production shape the environmental landscape of south ASIAN nations?. Energy Technologies and Environment; 2024, 2(1):7. https://doi.org/10.58567/ete02010002
Chicago/Turabian Style
Waris, Umra; Sri, Pallavi 2024. "Assessing the long-term impact of macroeconomic and environment dynamics: Does sustainable energy production shape the environmental landscape of south ASIAN nations?" Energy Technologies and Environment 2, no.1:7. https://doi.org/10.58567/ete02010002
APA style
Waris, U., & Sri, P. (2024). Assessing the long-term impact of macroeconomic and environment dynamics: Does sustainable energy production shape the environmental landscape of south ASIAN nations?. Energy Technologies and Environment, 2(1), 7. https://doi.org/10.58567/ete02010002

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