Abstract
As the global demand for electricity continues to grow, energy consumption for electricity production is increasing on a global scale. To address the growing power demand, the implementation of effective energy policies is crucial in alleviating the impact of energy consumption on climate change and ensuring the sustainability of the economy. From this perspective, this study analyses the role of renewable power generation (REPG) in sustainable economic growth and climate change mitigation in comparison with power generation from non-renewable energy sources (NREPG) based on the data from ten Asian countries. The study applies the fully modified ordinary least squares (FMOLS) and pairwise Dumitrescu-Hurlin causality tests. The results of both FMOLS and Dumitrescu-Hurlin causality tests show that REPG, including hydropower generation, has a significant positive impact on long run economic growth and makes a substantial contribution to reducing CO2 emissions. NREPG, including coal power generation, has a significant long-term impact on GDP, but it is found to be unviable for climate change mitigation. Both REPG and NREPG have long term economic viability, but REPG is more favorable than NREPG in terms of CO2 emissions. Therefore, REPG is identified to be a reliable source of power generation in maintaining a secure economy and minimizing the impact of climate change. Future power supply should focus on renewable energy sources. To foster renewable power production, REPG projects should be encouraged with attractive policies for project investments and implementation.
