Asymmetric impact of renewable and non-renewable energy on economic growth in Pakistan New evidence from a nonlinear analysis

• Published in: Energy exploration & exploitation Vol. 38; no. 5; pp. 1946 - 1967
• Main Authors: Abbasi, Kashif, Jiao, Zhilun, Shahbaz, Muhammad, Khan, Arman
• Format: Journal Article
• Language: English
• Published: London, England Sage Publications, Ltd 01-09-2020; SAGE Publications; Sage Publications Ltd; SAGE Publishing
• Subjects: Alternative energy sources; Asymmetry; Autoregressive models; Clean energy; Econometrics; Economic analysis; Economic development; Economic growth; Empirical analysis; Energy consumption; Impact analysis; Nonlinear analysis; Renewable energy sources; Renewable resources; Research Article; Terrorism; Time series; Pakistan; Pakistan; Renewable energy; non-renewable; terrorism; economic growth; NARDL
• ISSN: 0144-5987; 2048-4054
• DOI: 10.1177/0144598720946496

This paper explores the asymmetric relationship between renewable energy consumption, non-renewable energy, and terrorism on economic growth of Pakistan. We applied a novel econometric cointegration method known as a nonlinear autoregressive distributed lag modeling (NARDL). Our empirical findings indicate that positive and negative changes have a significant long-run asymmetric relationship between renewable energy, and terrorism on economic growth. We also found a negative and significant effect of non-renewable energy consumption on economic growth. To keep our environment clean and free of emissions, the study specifies policies that rely on renewable energy sources to boost economic growth. However, reduces terrorism has a positive impact on economic growth in the long-run and shows as an influential tool to combat terrorism in Pakistan. These novel results will help policy-makers and government officials to understand better the role of renewable energy and economic growth in Pakistan’s development.