Causal Relationship Among Carbon Dioxide (CO2) Emissions, Renewable Energy, Population and Economic Growth in Bangladesh: An Empirical Study

Abstract

Developing countries face environmental degradation crisis due to the consumption of nonrenewable energy for economic development induces ecological destruction. However, the consequences of environmental deterioration can no longer be overlooked. Using data from 1990 from 2018, this study scrutinized the long-run equilibrium along with the trend among consumption of renewable energy, carbon dioxide emissions, Population, and economic growth in Bangladesh. This study reveals the significant cointegration of renewable energy with controlled variables using the ARDL bound test. Also, ECM with ARDL unrestricted version enables us to decide the speed of adjustment is 27.647% addressed for short-run elasticity in the long run. Stability and further diagnostic tests are performed for model post estimation and validation. Also, it needs further steps from the government side to promote renewable energy that boosts economic development.