Factors affecting Renewable Energy Consumption: A Panel Data Analysis In ASIAN Countries

Abstract

The present research article has been to conducted to explore the link between non-fossil energy usage and its determinants namely cross border trade (TO), foreign direct investment (FDI), urbanization, CO2 releases, and institutions effectiveness quality (QGOV) in a panel of Asian nations i.e China, India, Japan, Pakistan, and Sri Lanka. The data has been collected from different data provider sources and covering time spam 1996 to 2020. Two different econometric techniques are applied in the present research article i.e Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS). As indicated by both of the models urbanization, FDI, and the governance quality contribute positively to the REC. Conversely, trade openness and CO2 releases exhibit a negative impact,that will lead to a decline in REC. The findings underscore the significance of government policies aimed at augmenting the supply of RE from contemporary sources, thereby encouraging the conversion from outdated to up-to-date clean energy sources.