This paper analyses the causal association between renewable energy consumption, carbon emissions (CO 2 ), and economic growth (GDP) for 1990-2019 in Bangladesh. In this work, the autoregressive distributed lag (ARDL) bound test and Granger causality approach are used to assess both the short and long-run relationships among variables. The empirical findings support the presence of co-integration between variables. The estimates of autoregressive distributed lag (ARDL) model suggest that carbon emissions led to elevated economic growth, whereas economic growth and renewable energy usage have a negative relationship. The Granger causality results reveal a predictive bidirectional causality between renewable energy consumption and economic growth, as well as predictive unidirectional causality from carbon emissions to both economic growth and renewable energy consumption in the long run. The results also reveal the existence of unidirectional causality from carbon emissions to economic growth and renewable energy usage to carbon emissions in the short run. Overall, the results suggest that Bangladesh's current economic expansion remains related with growing energy demand and continued fossil fuel reliance in the short run, which may limit rapid renewable energy transition. However, in the long run, increasing its share should eventually help induce further economic success. Therefore, Bangladesh should formulate policies targeting the trade-off between pollution and environment conservation without undermining its prosperity. Bangladesh should integrate renewable energy into its national grid, offer financial incentives for private sector investment in renewable projects, implement strict carbon emission regulations, introduce carbon pricing mechanisms, and invest in clean energy research and development to achieve sustainable economic growth and reduce environmental impacts.
Koiry et al. (Mon,) studied this question.