The role of renewable energy in reducing greenhouse gas emissions in selected South Asian countries : panel data analysis

Abstract

This quantitative study explores the effect of Renewable Energy on Greenhouse Gas Emissions (GHG) in the selected South Asian countries between 2003 and 2021. The research study is based on secondary data. It utilizes panel data and analyzes the data using STATA, a robust statistical software. Therefore, it sheds light on the complex relationship between investments in renewable energy and GHG emissions across the region. By separating the impacts of important explanatory factors on the dependent variable, this study employs Fixed Effects (FE) estimation to account for time-invariant unobserved heterogeneity across nations, ensuring more impartial and accurate results. Empirical results also depict a negative relationship between the use of renewable energy and greenhouse gas emissions, hence indicating that in the past 22 years, GHG emissions in South Asia have dropped drastically as its investment in renewable energy sources grew. It reveals the importance of renewable energy in mitigating climate change in South Asian Countries. According to the study, more investments in sustainable energy will boost economic growth and assist South Asian nations in achieving their sustainable development goals (SDGs). South Asia can advance sustainable development, equitable economic growth, and the welfare of its people by lowering the cost and increasing the availability of renewable energy in both urban and rural areas.