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Macroeconomic determinants of non-renewable and renewable energy consumption in India: The roles of international trade, innovative technologies, financial globalization, carbon emissions, financial development, and urbanization

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  • Alam, Mohammad Mahtab
  • Murshed, Muntasir
  • Ozturk, Ilhan
  • Khudoykulov, Kurshid

Abstract

Against scenarios of rising fossil fuel dependence and slow renewable energy adoption rates, this study appraises macroeconomic factors affecting non-renewable and renewable energy consumption in India. Additionally, this study makes a novel attempt to evaluate the determinants of divide between India's non-renewable and renewable energy consumption levels. Overall, the findings are three-fold. Firstly, it is found that in the short-run India's non-renewable energy consumption levels are positively and negatively determined by technological innovation and financial globalization, respectively. Besides, in the long-run, non-renewable energy consumption is positively influenced by international trade, financial globalization, carbon emission, and financial development; conversely, technological innovation reduces non-renewable energy consumption. Secondly, India's renewable energy consumption levels, in the short-run, are positively determined by international trade and technological innovation, while financial development impedes renewable energy consumption. Moreover, in the long-run, renewable energy consumption is positively and negatively impacted by technological innovation and financial globalization, respectively. Thirdly, the results confirm that financial globalization in the short-run and technological innovation in the long-run reduce the divide between India's non-renewable and renewable energy consumption levels. Contrarily, in the long-run, carbon emissions, international trade, financial globalization, and financial development widen this divide. Accordingly, policy suggestions are provided for the Indian government.

Suggested Citation

  • Alam, Mohammad Mahtab & Murshed, Muntasir & Ozturk, Ilhan & Khudoykulov, Kurshid, 2024. "Macroeconomic determinants of non-renewable and renewable energy consumption in India: The roles of international trade, innovative technologies, financial globalization, carbon emissions, financial d," Energy, Elsevier, vol. 308(C).
    • Handle: RePEc:eee:energy:v:308:y:2024:i:c:s0360544224027130
    DOI: 10.1016/j.energy.2024.132939
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