Evaluating the role of government expenditure in promoting renewable energy and economic growth in India
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Author(s)Karen FernandesLink to ORCID Index: https://orcid.org/0000-0002-4310-725X
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Shripad Ramchandra MaratheLink to ORCID Index: https://orcid.org/0000-0002-6797-6935
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Sanjeeta ParabLink to ORCID Index: https://orcid.org/0000-0003-0420-0440
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Virendra AmonkarLink to ORCID Index: https://orcid.org/0000-0001-6598-0247
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Gauri VernekarLink to ORCID Index: https://orcid.org/0009-0008-6893-4340
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Sunny Sonu PandhreLink to ORCID Index: https://orcid.org/0009-0007-3588-348X
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DOIhttp://dx.doi.org/10.21511/ee.16(2).2025.12
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Article InfoVolume 16 2025, Issue #2, pp. 162-172
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175 Downloads
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Creative Commons Attribution 4.0 International License
The transition to a sustainable energy economy requires substantial public investment, with government spending playing a crucial role in driving the adoption of renewable energy and achieving environmental outcomes. This study investigates the impact of India’s budgetary allocations on renewable energy consumption, carbon emissions, and economic growth. The analysis covers annual data from 1990 to 2024. It employs the autoregressive distributed lag (ARDL) bounds testing approach and the Granger causality test to examine long-term equilibrium relationships and directional causality among the variables. The results indicate a statistically significant long-run relationship between government expenditure, renewable energy usage, and carbon emissions. Specifically, a 1% increase in renewable energy consumption (REC) results in a 1.14% decrease in carbon emissions, demonstrating the environmental benefits of clean energy deployment. The ARDL model also shows that past government disbursements significantly contribute to emissions reduction, with coefficients of –2147.41 (p < 0.001) and –997.36 (p < 0.05) at lags one and two, respectively. Granger causality results confirm an unidirectional causal relationship between renewable energy expenditures (REE) and carbon emissions, as well as between government spending and gross domestic product (GDP), highlighting the dual impact of such investment on environmental sustainability and economic growth. The findings underscore the effectiveness of public financial support in accelerating the transition to renewable energy while advancing macroeconomic goals. Strengthening and sustaining government investment in renewable energy is essential for achieving India’s long-term development targets, reducing carbon intensity, and promoting green economic growth.
- Keywords
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JEL Classification (Paper profile tab)Q42, Q28, H23, O44
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References27
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Tables7
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Figures0
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- Table 1. Unit root test (ADF) (Null hypothesis: The variable has a unit root)
- Table 2. Autoregressive distributed lag model for estimating the impact of renewable energy consumption on CO₂ emissions
- Table 3. Bounds test for cointegration in the ARDL model for renewable energy consumption and CO2 emissions
- Table 4. Error correction model (VECM) for renewable energy consumption and CO2 emissions
- Table 5. Autoregressive distributed lag model for CO2 emissions and renewable energy expenditures
- Table 6. Bounds test for cointegration in the ARDL model for renewable energy expenditures and CO2 emissions
- Table 7. Granger causality test for CO2 emissions, REC and REE
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Impact on poverty and income inequality in Malaysia’s economic growth
Rabiul Islam 
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Ahmad Bashawir Abdul Ghani ,
Irwanshah Zainal Abidin ,
Jeya Malar Rayaiappan
doi: http://dx.doi.org/10.21511/ppm.15(1).2017.05
Problems and Perspectives in Management Volume 15, 2017 Issue #1 pp. 55-62 Views: 12732 Downloads: 6034 TO CITE АНОТАЦІЯPoverty and income inequality are extreme issues that still exist in Malaysia. Any rise in poverty and income inequality definitely affect economic growth. There are many great efforts taken by the government of Malaysia to eradicate poverty and to reduce the gap of income inequality which occurs since 1970’s. The incidence of poverty and income inequality is higher in rural areas compared to urban areas. This paper is mainly to study the level of poverty and income inequality in Malaysia together with government intervention to develop Malaysia’s economic growth. The research is focused among the working people at Ipoh, Perak. In this paper, questionnaire forms are being distributed to get information regarding the issue of poverty and income inequality. It also looks into the strategies taken by the government of Malaysia to eradicate poverty and income inequality. Few recommendations are given in terms of education policy, financial aid and assistance from government and non-government organization (NGO) to upgrade the standard and quality of living among the poor and lower-income group of people.
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Impact of inflation on economic growth: evidence from Nigeria
Anthony Olugbenga Adaramola ,
Oluwabunmi Dada
doi: http://dx.doi.org/10.21511/imfi.17(2).2020.01
Investment Management and Financial Innovations Volume 17, 2020 Issue #2 pp. 1-13 Views: 10481 Downloads: 6058 TO CITE АНОТАЦІЯIn an attempt to examine the influence of inflation on the growth prospects of the Nigerian economy, the study employs the autoregressive distributed lag on the selected variables, i.e. real gross domestic product (GDP), inflation rate, interest rate, exchange rate, degree of economy`s openness, money supply, and government consumption expenditures for the period 1980–2018. The study findings indicate that inflation and real exchange rate exert a significant negative impact on economic growth, while interest rate and money supply indicate a positive and significant impact on economic growth. Other variables in the model depict no influence on the economic growth of Nigeria. The causality result shows the unidirectional relationships between interest rate, exchange rate, government consumption expenditures and gross domestic product. However, inflation and the degree of openness show no causal relationship with gross domestic product. As a result, the study recommends that a more pragmatic effort is needed by the monetary authorities to target the inflation vigorously to prevent its adverse effect by ensuring a tolerable rate that would stimulate the economic growth of Nigeria.
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Formalization of the impact of imbalances in the movement of financial resources on economic growth of countries in Central and Eastern Europe
Serhiy Kozmenko ,
Maxim Korneyev
doi: http://dx.doi.org/10.21511/afc.01(1).2017.06
Accounting and Financial Control Volume 1, 2017 Issue #1 pp. 48-58 Views: 8469 Downloads: 1526 TO CITEThe article deals with the impact of financialization on economic growth in countries of Central and Eastern Europe. It determinesthe impact of imbalances in the movement of financial resources caused by financialization on economic growth of these countries. It proves that the implementation of measures aimed at increasing the openness of the economy and maintaining solvent demand have a positive impact on economic growth of the surveyed countries in the long run. It also proves the importance of developing a set of measures of strategic nature regulating imbalances in the movement of financial resources caused by financialization.
