Impact Of Renewable and Non-Renewable Energy Consumption on Economic Growth of Pakistan

Abstract

The study empirically investigates the influence of renewable and non-renewable energy consumption on economic growth of Pakistan by employs ARDL technique for the data period 1980 to 2021. The analysis emphasizes energy consumption's crucial part in economic growth and advocates for transformation to renewable energy sources. The findings indicate co-integration among independent variables and GDP growth. The long-term investigation illustrates positive influence of renewable energy and negative effects of specific non-renewable sources on economic growth. Capital stock, labor force, and natural gas exert significant influences on GDP growth. In essence, RE utilization plays a vital role in GDP growth, warranting cautious interpretation of non-RE sources. The study recommends increased investment in renewable energy to drive sustainable economic development. To alleviate potential interruptions to GDP growth, it also suggests falling reliance on non-RE sources and promoting renewable energy sources.