Assessing the drivers of (non)conventional energy portfolios in the South Asian economies: The role of technological innovation and human development

Abstract

AbstractEnergy is a vital component of economic development process, but part of the energy system including production and consumption of non‐renewable energy sources largely constitute environment setback. Interestingly, this research contributes to the growing debate on understanding the factors contributing to energy consumption portfolios using the case of five major South Asian economies including Bangladesh, India, Nepal, Sri Lanka, and Pakistan from 1990 to 2018. Crucial factors like trade flow, human development index, technological innovations, and urbanization were controlled for while examining the roles of economic expansion on the disaggregated energy consumption portfolios (renewable and non‐renewable energy sources) of these countries. The empirical dissection revealed that economic growth and the duo of trade and innovation are inimical to environmental sustainability as they trigger nonrenewable energy consumption while suppressing cleaner energy usage in the South Asian bloc. Urbanization on the other hand shows significant simultaneous positive impacts on the consumption of both renewables and nonrenewable energy, but its impacts are more pronounced on the latter than the former. Lastly, the study posits that human development and urbanization are major drivers of clean energy among the countries. Thus, strategic investment plans for human development enhancements and greener urban infrastructures are recommended for environmental sustainability goals in the region.