Analysis of Green Energy on Environmental Sustainability Framework in SAARC Countries

Abstract

Growth of industry and reliance on nonrenewable forms of energy in the SAARC region have added to the problem of environmental degradation, which has also increased the costs of health and exposure to climate change. The shift to renewable energy, technological change and sustainable tourism is necessary to secure the economic well-being, preserve the natural resources and guarantee the safety of people. This article examines how green energy is correlated with technological innovation, tourism and sustainability in the SAARC countries between the year 2000 and 2023 using the ARDL estimation methodology in the STIRPAT model. The independent variables are the consumption of renewable and nonrenewable energy, industrial production, foreign direct investment, technological advancement, tourism, participation of the labor force and urbanization. The dependent variables have been the environmental degradation, economic growth and population health. Model 1 (Environmental Sustainability Model) results show that the renewable energy, foreign direct investment, tourism and technological innovation lessen environmental degradation, whereas industrial activity and use of fossil fuels aggravate the situation. Model 2 (Economic Sustainability Model) indicates that long-term economic growth is influenced by renewable energy, innovation, tourism and labor force participation, but non-renewable energy is positive in the short term. According to Model 3 (Social Sustainability Model), the development of renewable energy, technological advances and tourism have a beneficial impact on the population's health in contrast to industrialization and fossil fuels. The paper identifies the necessity of the SAARC economies to speed up the process of switching to renewable energy, enhance the innovation potential and incorporate sustainable tourism in national policy. It is based on the 3Ps theory (People, Planet, Profit) and highlights the importance of clean energy and technology as the key solution to the balance in the environment, social welfare, and economic stability of the region.