The Role of Renewable Energy, Human Capital, and Carbon Emissions in Driving Economic Growth among South Asian Countries

This study examines the influence of renewable energy consumption, human capital, and carbon emissions on economic growth in South Asian nations, specifically Bangladesh, Bhutan, India, Nepal, Pakistan, and Sri Lanka. The study uses data from 1990 to 2021, a panel cointegration test, and the Fully Modified Ordinary Least Squares (FMOLS) model to look at how these variables are related. The findings show a positive correlation between economic growth and carbon emissions, while the use of renewable energy reduces these emissions. Human capital is pivotal, as elevated education and skill development contribute to diminished carbon emissions. The findings corroborate the Environmental Kuznets Curve (EKC) hypothesis, indicating that following a specific threshold of economic growth, carbon emissions decline. The study underscores the challenges confronting South Asian economies, such as rapid population growth and industrial expansion, which exacerbate carbon emissions. The study concludes by emphasizing the importance of incorporating renewable energy sources, improving human capital, and implementing environmentally sustainable policies in the region to achieve long-term economic growth and environmental sustainability.