Abstract:
Purpose. To study CO2 emissions through the use of renewable energy (RE) in the countries of the South Asian Association for
Regional Co-operation (SAARC) region (Bangladesh, Bhutan, Sri Lanka, India, Pakistan, Afghanistan, Nepal, and the Maldives)
using the data between 2002 and 2020.
Methodology. For the purpose of the study, panel estimation methods were employed including Pooled Mean Group (PMG),
Mean Group (MG), and Dynamic Fixed-Eff ect (DFE).
Findings. Hausman test confi rms the effi ciency of PMG estimation method compared to MG estimation method and DFE
estimation method. The results of PMG indicate long-run relationships among the studied variables. Besides, the outcomes of
PMG reveal the negative impact of RE on CO2 emissions in the long-run, while in the short-run, the study did not reveal the
impact of RE on CO2 emissions. In the case of specifi c countries, the results show that RE features increased CO2 emissions in a
country like Pakistan in the short-run, while RE decreases CO2 emissions in Bhutan, Nepal and Afghanistan in the short-run.
Originality. The study found the impact of RE consumption on CO2 emissions in SAARS countries obtained for the fi rst time
in the terms of SAARS region.
Practical value. The governments of the SAARC countries can use the results of the study attempting to decrease CO2 emissions.
