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Shifting to a green economy: Asymmetric macroeconomic determinants of renewable energy production in Pakistan

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  • Iqbal, Shahid
  • Wang, Ying
  • Ali, Sharafat
  • Haider, Muhammad Afaq
  • Amin, Nabila

Abstract

Given the imperative significance of renewable energy production in the debate on sustainable and reliable energy future, it is imperious to comprehend the main determinants of renewable energy and to draw appropriate implications for designing energy policy. This study aims to examine the asymmetric determinants of renewable energy production for Pakistan for a time horizon ranging from 1980 to 2019. For regression analysis, the study adopted symmetric autoregressive distributed lag (ARDL) and asymmetric autoregressive distributed lag (NARDL) approaches. The findings of the NARDL approach illustrate that positive change in GDP, CO2, and financial development lead to a significant positive increase in renewable energy production in the long-run. In contrast, the negative changes in GDP, CO2, and financial development exert no significant impact on renewable energy production in the long-run. However, the outcomes of ARDL approach reveal that GDP is the only determinant that leads to enhanced renewable energy production in the long-run.

Suggested Citation

  • Iqbal, Shahid & Wang, Ying & Ali, Sharafat & Haider, Muhammad Afaq & Amin, Nabila, 2023. "Shifting to a green economy: Asymmetric macroeconomic determinants of renewable energy production in Pakistan," Renewable Energy, Elsevier, vol. 202(C), pages 234-241.
    • Handle: RePEc:eee:renene:v:202:y:2023:i:c:p:234-241
    DOI: 10.1016/j.renene.2022.11.071
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