Macroeconomic Factors Shaping India's Energy Consumption: Renewables vs Non-Renewables

What is it about?

This abstract discusses a study on macroeconomic factors affecting non-renewable and renewable energy consumption in India. The research explores determinants of the divide between these two energy types. Key findings include short-term and long-term impacts of factors like technological innovation, financial globalization, international trade, carbon emissions, and financial development on both energy types. The study reveals that financial globalization and technological innovation can reduce the gap between non-renewable and renewable energy consumption in the short and long term, respectively. Conversely, factors like carbon emissions and international trade widen this divide in the long run. The research aims to provide policy suggestions for the Indian government to address energy consumption patterns and promote sustainable energy practices.

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Photo by Marco Di Baudo on Unsplash

Photo by Marco Di Baudo on Unsplash

Why is it important?

This research is significant because it examines the macroeconomic factors influencing non-renewable and renewable energy consumption in India, as well as the determinants of the divide between these two types of energy consumption. Given India's position as a rapidly emerging economy and the third-largest electricity-consuming country globally, understanding these factors is crucial for developing effective energy policies. The study's findings can help policymakers address the challenges of ensuring energy security while transitioning to more sustainable energy sources, which is essential for India's economic growth and environmental sustainability. Key Takeaways: 1. Energy Consumption Determinants: The study identifies several macroeconomic factors affecting India's non-renewable and renewable energy consumption, including technological innovation, financial globalization, international trade, carbon emissions, and financial development, both in the short-run and long-run. 2. Renewable Energy Transition: The research highlights the slow progress in renewable energy adoption in India, despite efforts to develop the sector, emphasizing the need for more effective policies to accelerate the transition from fossil fuels to renewable energy sources. 3. Policy Implications: The study's findings on factors affecting the divide between non-renewable and renewable energy consumption provide valuable insights for policymakers to formulate strategies that can reduce this gap and promote sustainable energy practices in India.