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Does Improvement in Trade Openness Facilitate Renewable Energy Transition? Evidence from Selected South Asian Economies

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  • Muntasir Murshed

Abstract

The aim of this article is to empirically shed light on the impacts of trade openness (TO) on facilitation of renewable energy transition (RET) across Bangladesh, India, Pakistan, Sri Lanka and Nepal. Against this backdrop, this article incorporated annual time series data stemming from 2000 to 2017 and employed the two-stage least squares (2SLS) panel data estimation methodology. In addition, the panel Granger causality test was also applied to distinguish the possible long-run causal associations between the variables considered in the regression models. In the light of the estimated results, it is found that an improvement in TO triggers renewable energy consumption, improves the primary energy-use efficiency and elevates the access to clean cooking fuel technology within the selected South Asian economies. However, the results also led to the concerning conclusion regarding the ineffectiveness of the trade liberalization policies in curbing the relative consumption of non-renewable energy resources, thereby marginalizing the prospects of overall RET within these economies. JEL: O13, P2, Q42, D12, F35

Suggested Citation

  • Muntasir Murshed, 2018. "Does Improvement in Trade Openness Facilitate Renewable Energy Transition? Evidence from Selected South Asian Economies," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 19(2), pages 151-170, September.
    • Handle: RePEc:sae:soueco:v:19:y:2018:i:2:p:151-170
    DOI: 10.1177/1391561418794691
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    More about this item

    Keywords

    Trade openness; renewable energy consumption; renewable energy transition; renewable energy share; causality;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • F35 - International Economics - - International Finance - - - Foreign Aid

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