An Enquiry into the Energy, Economy and Environment Nexus with Energy Mix Perspective

The dramatic decline of costs of renewables is the most significant event unfolding at the moment in the energy arena. The costs of wind power, solar PV and storage have all declined significantly and it is also translating into unprecedented deployment of greener technology. This will profoundly change the energy mix pattern of the future. The pattern is already experiencing a major shift, primarily a shift towards renewables from conventional. The declining renewable cost is perhaps the major cause behind the change in energy mix of different countries. This change is triggered by multiple socio-economic and techno-economic factors. The energy mix of the present world is getting diversified and it will only increase in the future. The diversifying energy mix brings the old question of energy-economy linkage in newer light. Initial studies on the linkage focused on energy consumption and economic growth relationship and the causalities inherent therein. Later, with the growth of renewables, the attention shifted to renewable energy and economy relationship. A few researchers also focused on nuclear energy and economic growth. As electrical energy happens to be one of the most convenient sources of energy, a vast literature is available on the relationship between electricity consumption at the one end and economy and environment on the other. The changing energy mix calls for a study of disaggregated energy generation and economy-environment nexus, where the available literature is sparse. The paper attempts to estimate the effects of energy sources at disaggregated level on the economy, environment and overall energy consumption using a panel of countries with relatively diversified energy mix. The results are useful for choosing the better options from among many competing energy mix baskets and should be beneficial for both policy makers and potential investors in the field of renewable energy.

کلیدواژه ها:

Energy Mix ، Economy ، Environment