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Exploring the Relationship between Renewable Energy Sources and Economic Growth. The Case of SAARC Countries

Author

Listed:
  • Qiucheng Li

    (Economics and Management School, Wuhan University, Wuhan 430072, China)

  • Jacob Cherian

    (College of Business, Abu Dhabi University, Abu Dhabi 59911, UAE)

  • Malik Shahzad Shabbir

    (Lahore Business School, University of Lahore, Lahore 54000, Pakistan)

  • Muhammad Safdar Sial

    (Department of Management Sciences, COMSATS University Islamabad (CUI), Islamabad 44000, Pakistan)

  • Jing Li

    (School of Accounting, Guangdong University of Finance & Economics Guangzhou, Guangdong 510320, China)

  • Ioana Mester

    (Department of Economics and Business, Faculty of Economic Sciences, University of Oradea, 410087 Oradea, Romania)

  • Alina Badulescu

    (Department of Economics and Business, Faculty of Economic Sciences, University of Oradea, 410087 Oradea, Romania)

Abstract
The purpose of this study is to examine the relationship between renewable energy sources and economic growth of the South Asian Association for regional cooperation (SAARC) countries. This study uses three main renewable energy sources, namely geothermal, hydro, and wind.This study collects data set from SAARC countries from 1995 to 2018 and applies a fixed effect test and panel vector error correction model (PVECM) for data analysis. The overall results show that all three renewable energy sources have a positive significant impact on economic development among SAARC countries’ economies. Moreover, hydropower renewable energy has more effects and influences on economic growth as compared to the other two individual sources of renewable energy.

Suggested Citation

  • Qiucheng Li & Jacob Cherian & Malik Shahzad Shabbir & Muhammad Safdar Sial & Jing Li & Ioana Mester & Alina Badulescu, 2021. "Exploring the Relationship between Renewable Energy Sources and Economic Growth. The Case of SAARC Countries," Energies, MDPI, vol. 14(3), pages 1-14, January.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:3:p:520-:d:483347
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    References listed on IDEAS

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