IDEAS home Printed from https://ideas.repec.org/a/rfh/bbejor/v13y2024i2p126-137.html
   My bibliography  Save this article

Green Energy Strategies and Their Effect on Natural Resource Sustainability in Pakistan

Author

Listed:
  • Kausar Kiran

    (Lecturer Economics, Institute of Southern Punjab University, Multan, Pakistan)

  • Dr. Muhammad Ali Gardezi

    (Assistant Professor of Economics, Institute of Southern Punjab University, Multan, Pakistan)

Abstract

This study explores the impact of green energy strategies on natural resource sustainability in Pakistan, utilizing data from 1999 to 2022 and applying the ARDL estimation technique. The primary focus is on understanding how renewable energy consumption and production influence natural resource rents. Empirical results indicate a complex relationship: renewable energy consumption is negatively correlated with natural resource rents, suggesting that increased consumption of renewable energy may reduce the exploitation of natural resources. Conversely, renewable energy production shows a positive correlation with natural resource rents, implying that boosting renewable energy production can enhance the value derived from natural resources. These findings underscore the dual role of renewable energy in promoting sustainability. On the consumption side, a shift towards renewables can alleviate pressure on natural resources, fostering long-term ecological balance. On the production side, investing in renewable energy infrastructure appears to complement the efficient use of natural resources, potentially increasing economic rents. Policymakers should encourage renewable energy consumption through incentives and subsidies, reducing dependence on non-renewable resources and mitigating environmental degradation.

Suggested Citation

  • Kausar Kiran & Dr. Muhammad Ali Gardezi, 2024. "Green Energy Strategies and Their Effect on Natural Resource Sustainability in Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(2), pages 126-135.
  • Handle: RePEc:rfh:bbejor:v:13:y:2024:i:2:p:126-137
    DOI: https://doi.org/10.61506/01.00307
    as

    Download full text from publisher

    File URL: https://bbejournal.com/BBE/article/view/813/786
    Download Restriction: no

    File URL: https://bbejournal.com/BBE/article/view/813
    Download Restriction: no

    File URL: https://libkey.io/https://doi.org/10.61506/01.00307?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Majeed, Abdul & Wang, Lijun & Zhang, Xiaohui & Muniba, & Kirikkaleli, Dervis, 2021. "Modeling the dynamic links among natural resources, economic globalization, disaggregated energy consumption, and environmental quality: Fresh evidence from GCC economies," Resources Policy, Elsevier, vol. 73(C).
    2. Shahbaz, Muhammad & Raghutla, Chandrashekar & Chittedi, Krishna Reddy & Jiao, Zhilun & Vo, Xuan Vinh, 2020. "The effect of renewable energy consumption on economic growth: Evidence from the renewable energy country attractive index," Energy, Elsevier, vol. 207(C).
    3. Wei, Xiaobo & Mohsin, Muhammad & Zhang, Qiongxin, 2022. "Role of foreign direct investment and economic growth in renewable energy development," Renewable Energy, Elsevier, vol. 192(C), pages 828-837.
    4. Marc Audi & Marc Poulin & Amjad Ali, 2024. "Environmental Impact of Business Freedom and Renewable Energy: A Global Perspective," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 672-683, May.
    5. Shiming Yang, 2020. "Trade for the Environment: Transboundary Hazardous Waste Movements After the Basel Convention," Review of Policy Research, Policy Studies Organization, vol. 37(5), pages 713-738, September.
    6. Ömer Esen & Metin Bayrak, 2017. "Does more energy consumption support economic growth in net energy-importing countries?," Journal of Economics, Finance and Administrative Science, Emerald Group Publishing Limited, vol. 22(42), pages 75-98, June.
    7. Esen, Ömer & Bayrak, Metin, 2017. "Does More Energy Consumption Support Economic Growth in Net Energy-Importing Countries?," Journal of Economics, Finance and Administrative Science, Universidad ESAN, vol. 22(42), pages 75-98.
    8. Ito, Katsuya, 2017. "CO2 emissions, renewable and non-renewable energy consumption, and economic growth: Evidence from panel data for developing countries," International Economics, Elsevier, vol. 151(C), pages 1-6.
    9. Ullah, Asad & Ali, Amjad, 2024. "Investigating Corruption, Income Inequality, and Environmental Degradation in Pakistan: A Time Series Analysis," MPRA Paper 121291, University Library of Munich, Germany.
    10. Bashir Muhammad & Sher Khan, 2021. "Understanding the relationship between natural resources, renewable energy consumption, economic factors, globalization and CO2 emissions in developed and developing countries," Natural Resources Forum, Blackwell Publishing, vol. 45(2), pages 138-156, May.
    11. Rafał Kasperowicz & Yuriy Bilan & Dalia Štreimikienė, 2020. "The renewable energy and economic growth nexus in European countries," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(5), pages 1086-1093, September.
    12. Filippidis, Michail & Tzouvanas, Panagiotis & Chatziantoniou, Ioannis, 2021. "Energy poverty through the lens of the energy-environmental Kuznets curve hypothesis," Energy Economics, Elsevier, vol. 100(C).
    13. Roussel, Yannick & Audi, Marc, 2024. "Exploring the Nexus of Economic Expansion, Tourist Inflows, and Environmental Sustainability in Europe," MPRA Paper 121529, University Library of Munich, Germany.
    14. Javier Arnaut & Johanna Lidman, 2021. "Environmental Sustainability and Economic Growth in Greenland: Testing the Environmental Kuznets Curve," Sustainability, MDPI, vol. 13(3), pages 1-13, January.
    15. Amri, Fethi, 2019. "Renewable and non-renewable categories of energy consumption and trade: Do the development degree and the industrialization degree matter?," Energy, Elsevier, vol. 173(C), pages 374-383.
    16. Jian Xue & Zeeshan Rasool & Raima Nazar & Ahmad Imran Khan & Shaukat Hussain Bhatti & Sajid Ali, 2021. "Revisiting Natural Resources—Globalization-Environmental Quality Nexus: Fresh Insights from South Asian Countries," Sustainability, MDPI, vol. 13(8), pages 1-19, April.
    17. Taha Zaghdoudi, 2017. "Internet usage, renewable energy, electricity consumption and economic growth : Evidence from developed countries," Economics Bulletin, AccessEcon, vol. 37(3), pages 1612-1619.
    18. Alvarado, Rafael & Deng, Qiushi & Tillaguango, Brayan & Méndez, Priscila & Bravo, Diana & Chamba, José & Alvarado-Lopez, María & Ahmad, Munir, 2021. "Do economic development and human capital decrease non-renewable energy consumption? Evidence for OECD countries," Energy, Elsevier, vol. 215(PB).
    19. Sumrin, Samina & Gupta, Suraksha & Asaad, Yousra & Wang, Yichuan & Bhattacharya, Saurabh & Foroudi, Pantea, 2021. "Eco-innovation for environment and waste prevention," Journal of Business Research, Elsevier, vol. 122(C), pages 627-639.
    20. Zhiqiang Dong & Canqing Tang & Xiahai Wei, 2018. "Does population aging intensify income inequality? Evidence from China," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 23(1), pages 66-77, January.
    21. Katsuya Ito, 2017. "CO2 emissions, renewable and non-renewable energy consumption, and economic growth: Evidence from panel data for developing countries," International Economics, CEPII research center, issue 151, pages 1-6.
    22. Dadson Awunyo-Vitor & Ruby Adjoa Sackey, 2018. "Agricultural sector foreign direct investment and economic growth in Ghana," Journal of Innovation and Entrepreneurship, Springer, vol. 7(1), pages 1-15, December.
    23. Shafiei, Sahar & Salim, Ruhul A., 2014. "Non-renewable and renewable energy consumption and CO2 emissions in OECD countries: A comparative analysis," Energy Policy, Elsevier, vol. 66(C), pages 547-556.
    24. Mohd Haizam Mohd Saudi & Obsatar Sinaga & Noor H. Jabarullah, 2019. "The Role of Renewable, Non-renewable Energy Consumption and Technology Innovation in Testing Environmental Kuznets Curve in Malaysia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 299-307.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Adedoyin Isola Lawal, 2023. "The Nexus between Economic Growth, Energy Consumption, Agricultural Output, and CO 2 in Africa: Evidence from Frequency Domain Estimates," Energies, MDPI, vol. 16(3), pages 1-27, January.
    2. Fareed, Zeeshan & Pata, Ugur Korkut, 2022. "Renewable, non-renewable energy consumption and income in top ten renewable energy-consuming countries: Advanced Fourier based panel data approaches," Renewable Energy, Elsevier, vol. 194(C), pages 805-821.
    3. Iftikhar Ahmad & Arifa Saeed & Muhammad Ibrahim Saeed & Clement Chiahemba Ajekwe, 2024. "Exports, FDI Inflows, Renewable Energy and Economic Growth: An Empirical Evidence from Singapore," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(1), pages 850-856.
    4. Chien, Fengsheng & Ajaz, Tahseen & Andlib, Zubaria & Chau, Ka Yin & Ahmad, Paiman & Sharif, Arshian, 2021. "The role of technology innovation, renewable energy and globalization in reducing environmental degradation in Pakistan: A step towards sustainable environment," Renewable Energy, Elsevier, vol. 177(C), pages 308-317.
    5. Zhongwei, Huang & Liu, Yishu, 2022. "The role of eco-innovations, trade openness, and human capital in sustainable renewable energy consumption: Evidence using CS-ARDL approach," Renewable Energy, Elsevier, vol. 201(P1), pages 131-140.
    6. Lei, Xiying & Alharthi, Majed & Ahmad, Ishtiaq & Aziz, Babar & Abdin, Zain ul, 2022. "Importance of international relations for the promotion of renewable energy, preservation of natural resources and environment: Empirics from SEA nations," Renewable Energy, Elsevier, vol. 196(C), pages 1250-1257.
    7. Matheus Koengkan, 2018. "The decline of environmental degradation by renewable energy consumption in the MERCOSUR countries: an approach with ARDL modeling," Environment Systems and Decisions, Springer, vol. 38(3), pages 415-425, September.
    8. Alharthi, Majed & Hanif, Imran & Alamoudi, Hawazen, 2022. "Impact of environmental pollution on human health and financial status of households in MENA countries: Future of using renewable energy to eliminate the environmental pollution," Renewable Energy, Elsevier, vol. 190(C), pages 338-346.
    9. Fiaz Ahmad Sulehri & Marc Audi & Marc Poulin & Amjad Ali, 2024. "Nexus between Innovation and Ecological Impact: A Moderated Mediation Investigation through Structural Equation Modeling Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 14(4), pages 509-518, July.
    10. Suyi Kim, 2022. "The Effects of Information and Communication Technology, Economic Growth, Trade Openness, and Renewable Energy on CO 2 Emissions in OECD Countries," Energies, MDPI, vol. 15(7), pages 1-15, March.
    11. Trinh, Hai Hong & Sharma, Gagan Deep & Tiwari, Aviral Kumar & Vo, Diem Thi Hong, 2022. "Examining the heterogeneity of financial development in the energy-environment nexus in the era of climate change: Novel evidence around the world," Energy Economics, Elsevier, vol. 116(C).
    12. Shahzad, Umer & Schneider, Nicolas & Ben Jebli, Mehdi, 2021. "How coal and geothermal energies interact with industrial development and carbon emissions? An autoregressive distributed lags approach to the Philippines," Resources Policy, Elsevier, vol. 74(C).
    13. Esposito, Luca, 2023. "Renewable energy consumption and per capita income: An empirical analysis in Finland," Renewable Energy, Elsevier, vol. 209(C), pages 558-568.
    14. Asif Raihan & Rawshan Ara Begum & Mohd Nizam Mohd Said & Joy Jacqueline Pereira, 2022. "Relationship between economic growth, renewable energy use, technological innovation, and carbon emission toward achieving Malaysia’s Paris agreement," Environment Systems and Decisions, Springer, vol. 42(4), pages 586-607, December.
    15. Shazia Kousar & Farhan Ahmed & María de las Nieves López García & Nimra Ashraf, 2020. "Renewable Energy Consumption, Water Crises, and Environmental Degradation with Moderating Role of Governance: Dynamic Panel Analysis under Cross-Sectional Dependence," Sustainability, MDPI, vol. 12(24), pages 1-16, December.
    16. Fangming Xie & Chuanzhe Liu & Huiying Chen & Ning Wang, 2018. "Threshold Effects of New Energy Consumption Transformation on Economic Growth," Sustainability, MDPI, vol. 10(11), pages 1-14, November.
    17. Abdullahi Muazu & Qian Yu & Mona Alariqi, 2023. "The Impact of Renewable Energy Consumption and Economic Growth on Environmental Quality in Africa: A Threshold Regression Analysis," Energies, MDPI, vol. 16(11), pages 1-29, June.
    18. Suyi Kim, 2020. "The Effects of Foreign Direct Investment, Economic Growth, Industrial Structure, Renewable and Nuclear Energy, and Urbanization on Korean Greenhouse Gas Emissions," Sustainability, MDPI, vol. 12(4), pages 1-14, February.
    19. Magazzino, Cosimo & Mele, Marco & Schneider, Nicolas, 2021. "A machine learning approach on the relationship among solar and wind energy production, coal consumption, GDP, and CO2 emissions," Renewable Energy, Elsevier, vol. 167(C), pages 99-115.
    20. Sri Fadilah & Rini Lestari & Mohd Hadafi Sahdan & Ahmad Zamil Abdul Khalid, 2020. "The Impact of Renewable Energy Consumption on the Economic Growth of the ASEAN Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 602-608.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rfh:bbejor:v:13:y:2024:i:2:p:126-137. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Muhammad Irfan Chani (email available below). General contact details of provider: https://edirc.repec.org/data/rffhlpk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.