The Effects of Renewable Energy, Innovation, and Governance on Climate Change and Economic Growth—Investigating the Opportunities and Challenges for Emerging Asia

Abstract

The paper investigates the opportunities provided by renewable energy consumption and innovation along with the challenges posed by corruption and political instability, for climate- change mitigation and economic growth in seven selected emerging Asian economies from 2000 to 2018. Based on panel ARDL and 3SLS estimations, we find that both renewable energy and corruption control are beneficial to the economy and the environment. In contrast, innovation, non-renewable energy consumption, and trade result in environmental degradation in these economies. These findings are relevant for sustainable economic growth in these countries.