Green Economy and Sustainable Growth: An Empirical Analysis of Selected Countries
DOI:
https://doi.org/10.63075/q5a0ak57Keywords:
Green economy, Sustainable economic growth, CO2 emissions, Renewable energy, Non-renewable energy, Foreign Direct Investment (FDI), ARDL model, Westerlund Cointegration Test, GDP growth, Environmental policy.Abstract
This study investigates the impact of the green economy on sustainable economic growth in twenty-two selected Asian countries from 1990 to 2023. The research focuses on countries identified by the Asia Pacific Accreditation Cooperation Incorporated (APAC) as leading markets in renewable energy, likely due to increasing investment in renewable energy development. Using data from the World Development Indicators (WDI). The research aims to determine the extent to which green economy factors contribute to sustainable economic growth in these Asian countries. The Autoregressive Distributed Lag (ARDL) model results revealed a significant positive relationship between CO2 emissions, FDI, and GDP. Non-renewable energy production showed a negative impact on GDP. Interestingly, renewable energy consumption exhibited a significant negative relationship with GDP. The Westerlund Cointegration Test confirmed long-run relationships among the variables of this study. To promote sustainable growth, policymakers should encourage FDI while balancing environmental concerns, investing in efficient renewable energy technologies, and creating awareness about sustainable practices. Further research is needed to understand the complex dynamics between renewable energy consumption and economic growth in different contexts.
