Green Energy Strategies and Their Effect on Natural Resource Sustainability in Pakistan
DOI:
https://doi.org/10.61506/01.00307Keywords:
Green Energy Strategies, Natural Resource Sustainability, ARDLAbstract
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.
References
Alvarado, R., Deng, Q., Tillaguango, B., Méndez, P., Bravo, D., Chamba, J., Alvarado-Lopez, M., & Ahmad, M. (2021). Do economic development and human capital decrease non-renewable energy consumption? Evidence for OECD countries. Energy, 215. DOI: https://doi.org/10.1016/j.energy.2020.119147
Amri, F. (2019). Renewable and non-renewable categories of energy consumption and trade: Do the development degree and the industrialization degree matter? Energy, 173. DOI: https://doi.org/10.1016/j.energy.2019.02.114
Arnaut, J., & Lidman, J. (2021). Environmental sustainability and economic growth in greenland: Testing the environmental kuznets curve. Sustainability (Switzerland), 13(3). DOI: https://doi.org/10.3390/su13031228
Asghar, M. M., Wang, Z., Wang, B., & Zaidi, S. A. H. (2020). Nonrenewable energy—environmental and health effects on human capital: empirical evidence from Pakistan. Environmental Science and Pollution Research, 27(3). DOI: https://doi.org/10.1007/s11356-019-06686-7
Asghar, M., Gardezi, M. A., & Ali, S. (2022). Saving-Investment or Foreign Exchange Gap: What Hinders Fiscal Stability in Pakistan? under a Creative Commons Attribution-Non-Commercial 4.0. In International Journal of Management Research and Emerging Sciences (Vol. 12, Issue 4). DOI: https://doi.org/10.56536/ijmres.v12i4.337
Audi, M., Poulin, M., & Ali, A. (2024). Environmental Impact of Business Freedom and Renewable Energy: A Global Perspective. International Journal of Energy Economics and Policy, 14(3), 672–683. DOI: https://doi.org/10.32479/ijeep.16007
Aurmaghan, M., Zulfiqar Ali Shah Assistant Professor, S., Ali Gardezi, M., Scholar, A., Zulfiqar Ali Shah, S., & Nawaz, W. (2022). Foreign Direct Investment and Its Impact on Macroeconomic Performance in Pakistan. In Turkish Online Journal of Qualitative Inquiry (TOJQI) (Vol. 13, Issue 1).
Awunyo-Vitor, D., & Sackey, R. A. (2018). Agricultural sector foreign direct investment and economic growth in Ghana. Journal of Innovation and Entrepreneurship, 7(1). DOI: https://doi.org/10.1186/s13731-018-0094-3
Chen, R., Ramzan, M., Hafeez, M., & Ullah, S. (2023). Green innovation-green growth nexus in BRICS: Does financial globalization matter? Journal of Innovation and Knowledge, 8(1). DOI: https://doi.org/10.1016/j.jik.2022.100286
Curran, M., & Mahutga, M. C. (2018). Income Inequality and Population Health: A Global Gradient? Journal of Health and Social Behavior, 59(4). DOI: https://doi.org/10.1177/0022146518808028
Dong, Z., Tang, C., & Wei, X. (2018). Does population aging intensify income inequality? Evidence from China. Journal of the Asia Pacific Economy, 23(1). DOI: https://doi.org/10.1080/13547860.2017.1354270
Esen, Ö., & Bayrak, M. (2017). Does more energy consumption support economic growth in net energy-importing countries? Journal of Economics, Finance and Administrative Science, 22(42). DOI: https://doi.org/10.1108/JEFAS-01-2017-0015
Farhadi, M., & Zhao, L. (2024). Exploring the Impact of Iran-China Trade on Environmental Sustainability. Journal of Energy and Environmental Policy Options, 7(1), 1-8.
Farooq, F., Ali Gardezi, M., & Safdar, N. (2020). How do Population and Poverty Affect Environmental Degradation in Developing Countries? A Panel Data Analysis. In Review of Applied Management and Social Sciences (RAMSS) (Vol. 3, Issue 1).
Farooq, F., Aurangzaib, Faheem, M., & Gardezi, M. A. (2022). Dynamic Common Correlated Effects of Public Debt on Energy Poverty Alleviation in OIC Member Countries: Does Institutional Performance Matter? Pakistan Journal of Commerce and Social Science, 16(4).
Filippidis, M., Tzouvanas, P., & Chatziantoniou, I. (2021). Energy poverty through the lens of the energy-environmental Kuznets curve hypothesis. Energy Economics, 100. DOI: https://doi.org/10.1016/j.eneco.2021.105328
Gardezi, M. A., & Chaudhry, I. S. (2022). Globalization and Energy Consumption: Empirical Implications for Income Inequality in Developing Countries. Review of Economics and Development Studies, 8(2), 111–125. DOI: https://doi.org/10.47067/reads.v8i2.440
Gardezi, M., Qayyum, A., Zaib, A., & Pervaiz, M. (2024). International Journal of Social Science Archives Investigating the Linkages: Energy Consumption, Institutional Quality, and Environmental Quality in Pakistan. International Journal of Social Science Archives |, 7(1), 283–295. www.ijssa.com
Gardezi, M., Zaib, A., Zahir Faridi, M., James, S., & Karim, Y. (2023). Investigating The Impact Of Globalization And Energy Consumption On Environment In Developing Countries: Does Environmental Sustainability Exist? In Journal of Positive School Psychology (Vol. 2023, Issue 3).
Hassan, S. T., Xia, E., Huang, J., Khan, N. H., & Iqbal, K. (2019). Natural resources, globalization, and economic growth: evidence from Pakistan. Environmental Science and Pollution Research. DOI: https://doi.org/10.1007/s11356-019-04890-z
Hussain, H. I., Haseeb, M., Kamarudin, F., Dacko-Pikiewicz, Z., & Szczepańska-Woszczyna, K. (2021). The role of globalization, economic growth and natural resources on the ecological footprint in thailand: Evidence from nonlinear causal estimations. Processes, 9(7). DOI: https://doi.org/10.3390/pr9071103
Imam, A. (2022). Impact Of Carbon Taxes, Economic Growth, Globalization, Forest Rent, Inflation And Urbanization On Sustainable Development In China. International Journal of Research -Granthaalayah, 9(12). DOI: https://doi.org/10.29121/granthaalayah.v9.i12.2021.4450
Immurana, M., Iddrisu, A. A., Boachie, M. K., & Dalaba, M. A. (2021). Financial inclusion and population health in Africa. Journal of Sustainable Finance and Investment. DOI: https://doi.org/10.1080/20430795.2021.1953929
Ito, K. (2017). CO2 emissions, renewable and non-renewable energy consumption, and economic growth: Evidence from panel data for developing countries. International Economics, 151. DOI: https://doi.org/10.1016/j.inteco.2017.02.001
Ivanovski, K., Hailemariam, A., & Smyth, R. (2021). The effect of renewable and non-renewable energy consumption on economic growth: Non-parametric evidence. Journal of Cleaner Production, 286. DOI: https://doi.org/10.1016/j.jclepro.2020.124956
Kasperowicz, R., Bilan, Y., & Štreimikienė, D. (2020). The renewable energy and economic growth nexus in European countries. Sustainable Development, 28(5). DOI: https://doi.org/10.1002/sd.2060
Kisswani, K. M. (2017). Evaluating the GDP-energy consumption nexus for the ASEAN-5 countries using nonlinear ARDL model. OPEC Energy Review, 41(4). DOI: https://doi.org/10.1111/opec.12113
Le, H. P. (2020). The energy-growth nexus revisited: the role of financial development, institutions, government expenditure and trade openness. Heliyon, 6(7). DOI: https://doi.org/10.1016/j.heliyon.2020.e04369
Magazzino, C. (2018). GDP, energy consumption and financial development in Italy. International Journal of Energy Sector Management, 12(1). DOI: https://doi.org/10.1108/IJESM-01-2017-0004
Majeed, A., Wang, L., Zhang, X., Muniba, & Kirikkaleli, D. (2021). Modeling the dynamic links among natural resources, economic globalization, disaggregated energy consumption, and environmental quality: Fresh evidence from GCC economies. Resources Policy, 73. DOI: https://doi.org/10.1016/j.resourpol.2021.102204
Muhammad, B., & Khan, S. (2021). Understanding the relationship between natural resources, renewable energy consumption, economic factors, globalization and CO2 emissions in developed and developing countries. Natural Resources Forum, 45(2). DOI: https://doi.org/10.1111/1477-8947.12220
Munir, R., Mureed, S. M., Ahmad Dar, A. M., & Ali Gardezi, M. M. (2023). Impact of Personal Remittances on Economic Growth of Pakistan: A Multivariate Cointegration Analysis. Journal of Positive School Psychology, 7(3), 494–508.
Naraghi, N., Moghaddasi, R., & Mohamadinejad, A. (2021). Nexus between energy consumption and agricultural inflation: An iranian experience. International Energy Journal, 21(1).
Olunuga, A. (2022). Financial Globalization, Economic Growth And Sustainable Development In Emerging Economy. Economic Profile, 17(2(24)). DOI: https://doi.org/10.52244/ep.2022.24.02
Purnomo, B. R., Srifitriani, A., Shichiyakh, R. A., Laxmi Lydia, E., & Shankar, K. (2020). Main assumption for treatment the natural resources in environment. Journal of Environmental Treatment Techniques, 8(1).
Rafindadi, A. A., & Usman, O. (2019). Globalization, energy use, and environmental degradation in South Africa: Startling empirical evidence from the Maki-cointegration test. Journal of Environmental Management, 244. DOI: https://doi.org/10.1016/j.jenvman.2019.05.048
Rehman, A., & Ahmad, A. (2024). Exploring the Non-linear Relationship between Oil Price Uncertainty and Manufacturing Production in Pakistan. Journal of Energy and Environmental Policy Options, 7(1), 19-27.
Roussel, Y., & Audi, M. (2024). Exploring the Nexus of Economic Expansion, Tourist Inflows, and Environmental Sustainability in Europe. Journal of Energy and Environmental Policy Options, 7(1), 28-36.
Saudi, M. H. M., Sinaga, O., & Jabarullah, N. H. (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, 9(1).
Segerson, K., Pearce, D. W., & Turner, R. K. (1991). Economics of Natural Resources and the Environment. Land Economics, 67(2). DOI: https://doi.org/10.2307/3146419
Shafiei, S., & Salim, R. A. (2014). Non-renewable and renewable energy consumption and CO2 emissions in OECD countries: A comparative analysis. Energy Policy, 66. DOI: https://doi.org/10.1016/j.enpol.2013.10.064
Shahbaz, M., Raghutla, C., Chittedi, K. R., Jiao, Z., & Vo, X. V. (2020). The effect of renewable energy consumption on economic growth: Evidence from the renewable energy country attractive index. Energy, 207. DOI: https://doi.org/10.1016/j.energy.2020.118162
Sumrin, S., Gupta, S., Asaad, Y., Wang, Y., Bhattacharya, S., & Foroudi, P. (2021). Eco-innovation for environment and waste prevention. Journal of Business Research, 122. DOI: https://doi.org/10.1016/j.jbusres.2020.08.001
Tawari, N. (2024). Examining the Demand-Pull Factors of Household Electricity Consumption in Delhi. Journal of Energy and Environmental Policy Options, 7(1), 37-44.
Topcu, M., & Tugcu, C. T. (2020). The impact of renewable energy consumption on income inequality: Evidence from developed countries. Renewable Energy, 151, 1134–1140. DOI: https://doi.org/10.1016/j.renene.2019.11.103
Ullah, A., & Ali, A. (2024). Investigating Corruption, Income Inequality, and Environmental Degradation in Pakistan: A Time Series Analysis. Journal of Energy and Environmental Policy Options, 7(1), 9-18.
Viana Espinosa de Oliveira, H., & Moutinho, V. (2022). Do renewable, non-renewable energy, carbon emission and KOF globalization influencing economic growth? Evidence from BRICS’ countries. Energy Reports, 8. DOI: https://doi.org/10.1016/j.egyr.2022.01.031
Wei, X., Mohsin, M., & Zhang, Q. (2022). Role of foreign direct investment and economic growth in renewable energy development. Renewable Energy, 192. DOI: https://doi.org/10.1016/j.renene.2022.04.062
Xue, J., Rasool, Z., Nazar, R., Khan, A. I., Bhatti, S. H., & Ali, S. (2021). Revisiting natural resources-globalization-environmental quality nexus: Fresh insights from South Asian countries. Sustainability (Switzerland), 13(8). DOI: https://doi.org/10.3390/su13084224
Yang, S. (2020). Trade for the Environment: Transboundary Hazardous Waste Movements After the Basel Convention. Review of Policy Research, 37(5). DOI: https://doi.org/10.1111/ropr.12386
Yang, W., & Kanavos, P. (2012). The less healthy urban population: income-related health inequality in China. BMC Public Health, 12. DOI: https://doi.org/10.1186/1471-2458-12-804
Zaghdoudi, T. (2017). Internet usage, renewable energy, electricity consumption and economic growth: Evidence from developed countries. Economics Bulletin, 37(3).
Zaib, A., Ali Gardezi, M., & Rafique, M. (2023). Dynamics of Public Debt, Political Institutions, and Economic Growth: A Quantile Analysis in Developing Economies (1996-2021). Administration and Law (REAL), 6(2), 469–480.
Zaib, A., Rafique, M., Jahanzaib, & Gardezi, M. A. (2023). Exploring the Dynamics of Investment Inflow, Political Institutions, Trade, and Economic Growth: A Developing Countries Perspective (1971-2021). IRASD Journal of Economics, 5(2), 520– DOI: https://doi.org/10.52131/joe.2023.0502.0143
Ze, F., Yu, W., Ali, A., Hishan, S. S., Muda, I., & Khudoykulov, K. (2023). Influence of natural resources, ICT, and financial globalization on economic growth: Evidence from G10 countries. Resources Policy, 81. DOI: https://doi.org/10.1016/j.resourpol.2022.103254