Can renewable energy drive industrial growth in developing economies? Evidence from India

Abstract

Purpose This paper aims to focus on the contribution of segregated renewable energy (RE) sources such as solar, wind, bagasse, biomass, small hydropower (SHP) and waste to heat in driving sustainable industrial production in India. Design/methodology/approach This study uses non-linear modelling techniques such as quantile regression and the non-linear Granger causality test to explore the interplay between segregated RE generation and industrial production in India. Findings The study findings support the role of segregated RE sources generation, especially SHP and bagasse, on industrial production in India. This paper finds unidirectional non-linear Granger causality running from segregated RE sources to industrial production. Bidirectional non-linear Granger causality has been established from biomass, waste-heat to index of industrial production and vice versa, supporting an asymmetric feedback hypothesis. Research limitations/implications The study findings will aid the energy policymaker in framing policies for RE sources, especially bagasse-based and SHP generation for the sustainable industrial growth of India. Originality/value To the best of the authors’ knowledge, this is one of the first studies to explore the role of segregated RE sources generation to drive sustainable industrial growth in India using non-linear techniques.

Industrialization and environmental sustainability in Africa: The moderating effects of renewable and non-renewable energy consumption

“…Thus, the negative effects of manufacturing on environmental degradation are offset by the positive impacts of deploying renewable energies for manufacturing. This result aligns with [ 27 , 29 ] which found that renewable energy accelerates and is accelerated by value added in manufacturing. Also, in the case of Central Asia and Europe [ 28 ], found that industrialization degrades the environment through increased emissions of CO 2 .…”

“…From an empirical perspective, however, the literature connecting renewable energy consumption and industrial growth is scanty. Dey et al [ 27 ] and Van Hoang [ 29 ] are amongst the few studies that have investigated this relationship. For instance, Ref.…”

“…The study established bidirectional causality between renewable energy consumption and industrialization. Dey et al [ 27 ] disaggregated renewable energy in to different sources; biomass, solar, wind, bagasse, small hydropower (SHP) and waste and considered their effect on sustainable industrialization in India. Based on quantile regression, renewable energy sources, especially SHP and bagasse increased industrial production in India.…”

“…This has generated interest in renewable energy, which has the ability to minimize environmental and ecological damage [ 25 , 26 ]. Empirically, the literature connecting renewable energy consumption to industrial development is scanty, with the works of [ [27] , [28] , [29] ] being amongst the few. Similarly, most studies have only investigated the relationship between non-renewable energy consumption and economic growth [ [30] , [31] , [32] , [33] , [34] ], studies focusing specifically on industrial growth being relatively scarce.…”

Affordability of electricity to rural consumers in Tanzania: An elephant in the room?

“…The ownership of mobile phones increased in the post-electrification era because a reliable source of power was available to run them. Moreover, it is expected that the trend of appliance ownership will continue to evolve, with households potentially purchasing more useful appliances to support small-scale industrial or entrepreneurial activities (Dey et al, 2023).…”