A Comparative Analysis of Renewable and Non-Renewable Energy Resources in Pakistan

The fossil fuels are being used excessively in Pakistan to meet growing energy demand without considering its negative effect on environment and the society. People cannot adopt renewable energy due to unaffordability and its high upfront cost. The primary objectives of this study is to compare renewable and non-renewable energy resources relationship with economic growth and to see how income inequality influences the adoption of renewable energy using a time series dataset spanning from 1986 to 2022 and employing dynamic ARDL-Error Correction modeling approach to determine short and long-term relationship between renewable, non-renewable energy resources, net per capita income and industrialization on economic growth. The study's findings reveal a negative link between non-renewable resources and economic growth both in short- and- long-term. However, a positive link was observed between renewable energy resources and economic growth, confirming Environmental Kuznets Curve hypothesis and providing valuable fresh insight for policymakers and stakeholders to focus on promotion of renewable energy resources to sustain economic growth.