Can renewable energy drive industrial growth in developing economies? Evidence from India
International Journal of Energy Sector Management
ISSN: 1750-6220
Article publication date: 8 November 2022
Issue publication date: 25 July 2023
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.
Keywords
Acknowledgements
The authors acknowledge the support of the faculty of the Department of Management Studies, IIT Delhi, for their guidance and knowledge sharing required for the completion of the paper.
Credit statement: Kaushik Dey: conceptualisation, investigation, methodology, writing-original draft preparation and software; Dr Amlendu Kumar Dubey: methodology, validation, writing- reviewing and editing; and Dr Seema Sharma: supervision.
Funding source: This research did not receive any specific grant from funding agencies in the public, commercial or not-for-profit sectors.
Declaration of interests: The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper. The authors declare the following financial interests/personal relationships which may be considered as potential competing interests.
Citation
Dey, K., Dubey, A.K. and Sharma, S. (2023), "Can renewable energy drive industrial growth in developing economies? Evidence from India", International Journal of Energy Sector Management, Vol. 17 No. 5, pp. 950-971. https://doi.org/10.1108/IJESM-09-2021-0016
Publisher
:Emerald Publishing Limited
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