Environmental Science and Pollution Research

, Volume 24, Issue 15, pp 13546–13560 | Cite as

The significance of renewable energy use for economic output and environmental protection: evidence from the Next 11 developing economies

  • Sudharshan Reddy Paramati
  • Avik Sinha
  • Eyup Dogan
Research Article

Abstract

Increasing economic activities in developing economies raise demand for energy mainly sourced from conventional sources. The consumption of more conventional energy will have a significant negative impact on the environment. Therefore, attention of policy makers has recently shifted towards the promotion of renewable energy generation and uses across economic activities to ensure low carbon economy. Given the recent scenario, in this paper, we aim to examine the role of renewable energy consumption on the economic output and CO2 emissions of the next fastest developing economies of the world. The study employs several robust panel econometric models by using annual data from 1990 to 2012. Empirical findings confirm the significant long-run association among the variables. Similarly, results show that renewable energy consumption positively contributes to economic output and has an adverse effect on CO2 emissions. Given our findings, we suggest policy makers of those economies to initiate further effective policies to promote more renewable energy generation and uses across economic activities to ensure sustainable economic development.

Keywords

Renewable energy consumption Sustainable economic development CO2 emissions Developing economies 

JEL classification

C23 O44 P28 Q01 R11 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2017

Authors and Affiliations

  • Sudharshan Reddy Paramati
    • 1
  • Avik Sinha
    • 2
  • Eyup Dogan
    • 3
  1. 1.International Institute for Financial StudiesJiangxi University of Finance and EconomicsNanchangChina
  2. 2.Centre for Economics and FinanceAdministrative Staff College of IndiaHyderabadIndia
  3. 3.Department of EconomicsAbdullah Gul UniversityKayseriTurkey

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