Open Access Journal Article

The Role of Oscillations in Macroeconomic and Financial Factors in the Production of Renewable Energy: A Case Study of Selected South Asian Economies

by Shahid Ali a,*
a
North China Electric Power University, Beijing, China
*
Author to whom correspondence should be addressed.
ETE  2024, 16; 2(3), 16; https://doi.org/10.58567/ete02030001
Received: 31 December 2023 / Accepted: 18 April 2024 / Published Online: 4 July 2024
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Abstract

The objective of this study is to explore the link between the financial sector, macroeconomic fluctuations, and sustainable energy production in South Asia. It evaluates existing research, identifies gaps, and suggests future directions. The study emphasizes the need to understand how economic activities influence the environment and how environmental factors impact economic and financial outcomes. It also examines financial market responses to understand the manifestation of economic and environmental factors, using data from Bangladesh, India, Pakistan, and Sri Lanka spanning 1987 to 2022. The results show that investment in green energy is essential for developing countries. The study suggests that the relationship between the region's stock market, GDP, carbon emissions, and green energy is complex, with a negative response to domestic credit indicating potential obstacles to investment, such as policy barriers or insufficient incentives. Mixed responses highlight the need for credit directed towards sustainable projects. Variations in responses across economic indicators may indicate policy challenges or structural issues, necessitating a reassessment of government policies to incentivize sustainable investments and promote green technology adoption. These results imply that policymakers should precisely assess the environmental ramifications of economic growth and stock market activities. This presents an opportunity to craft policies that guide investments toward cleaner technologies and industries, aligning economic growth with sustainable practices. Policymakers and financial institutions should explore ways to incentivize green energy investments and promote sustainable economic growth.

Keywords: Green energy investment; Carbon emissions; Financial sector; Macroeconomic fluctuations; South Asia;
Copyright: © 2024 by Ali. 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
Ali, S. The Role of Oscillations in Macroeconomic and Financial Factors in the Production of Renewable Energy: A Case Study of Selected South Asian Economies. Energy Technologies and Environment, 2024, 2, 16. https://doi.org/10.58567/ete02030001
AMA Style
Ali S. The Role of Oscillations in Macroeconomic and Financial Factors in the Production of Renewable Energy: A Case Study of Selected South Asian Economies. Energy Technologies and Environment; 2024, 2(3):16. https://doi.org/10.58567/ete02030001
Chicago/Turabian Style
Ali, Shahid 2024. "The Role of Oscillations in Macroeconomic and Financial Factors in the Production of Renewable Energy: A Case Study of Selected South Asian Economies" Energy Technologies and Environment 2, no.3:16. https://doi.org/10.58567/ete02030001
APA style
Ali, S. (2024). The Role of Oscillations in Macroeconomic and Financial Factors in the Production of Renewable Energy: A Case Study of Selected South Asian Economies. Energy Technologies and Environment, 2(3), 16. https://doi.org/10.58567/ete02030001

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