Renewable energy in Bangladesh: economic growth and policy perspectives

Abstract

Purpose The purpose of this study is to see the energy relation to economic growth and find a way to solve the energy crisis for Bangladesh. Bangladesh is facing a high rate depletion of traditional energy sources. Renewable energy technology may be an alternative solution to meeting Bangladesh’s rising energy demand. Despite huge potential, Bangladesh fails to use renewable energy sources properly due to insufficient information and technical knowledge. The present research studied the current energy condition and potentiality of renewable energy with its influence on economic growth in Bangladesh. Design/methodology/approach This study analyzes the relationship between renewable energy consumption and economic growth of Bangladesh for the period of 2001–2016, based on yearly data, by using multiple regression model where augmented Dickey–Fuller unit root test has been chosen for testing the viability. Findings The result of this study showed that economic growth of Bangladesh is influenced positively by the consumption of renewable energy. Practical implications In addition, SWOT analysis has also done to develop a roadmap, and suggest some policies which will be able to accomplish the country’s climbing energy demands for a short- and long-term solution. Originality/value This study is an original work for Bangladesh, showing the results of the relationship between renewable energy consumption and economic growth. Therefore, this research will be useful to contribute to the literature review in the near future.